The Nigerian Education Loan Fund (NELFUND) has confirmed that the Federal Government’s student education loan is repayable and interest-free, revealing that it has so far received more than 760,000 applications from students seeking financial support for their studies.
The announcement came during a one-day capacity-building session for students at the University of Port Harcourt, Rivers State.
Managing Director of NELFUND, Mr. Akintunde Sawyer, explained that the loan structure ensures beneficiaries receive monthly stipends for their upkeep while tuition fees are paid directly to their respective institutions. “As of today, we pay N20,000 a month, that is N240,000 for a session for the student. The loan is repayable, and none of these loans are with interest,” Sawyer said. He added that repayment begins two years after the beneficiary completes the National Youth Service Corps (NYSC), with employers required to deduct 10 percent of the graduate’s income—upon the borrower’s consent—to be remitted to NELFUND until the loan is cleared.
Sawyer disclosed that out of the total applicants, 400,000 students are already receiving the benefits, either through tuition payments or upkeep stipends. “So far, we have disbursed over N80 billion to Nigerian institutions and Nigerians who are benefiting from the loan,” he noted, adding that applications continue to pour in, with 2,700 received in the last 24 hours alone.
Highlighting the government’s broader commitment to youth development, the Senior Special Assistant to the President on Students Engagement, Comrade Asefon Sunday, praised President Bola Tinubu’s administration for introducing youth-friendly policies such as NELFUND and funding innovation hubs in 15 schools nationwide. He emphasized the importance of raising awareness among students about these opportunities, noting that low access to accurate information has left many unaware of available programs.
Sunday further mentioned that the President recently approved the installation of renewable energy solutions in universities across Nigeria’s six geopolitical zones, aiming to improve learning environments. He described the student engagement event as a platform for student leaders to ask questions, share ideas, and ensure that every Nigerian student—regardless of location or background—can benefit from government-backed initiatives.
What You Should Know
Over 760,000 Nigerian students have applied for the Federal Government’s interest-free education loan, with 400,000 already benefiting.
The loan covers tuition fees paid directly to schools and upkeep stipends of N20,000 monthly. Repayment begins two years after NYSC when the beneficiary gains employment, with 10 percent of their income remitted to NELFUND until full repayment.
The initiative is part of broader education and youth development policies under President Tinubu’s administration, which also include innovation hubs and renewable energy projects in universities.
