Who the Student Loan Scheme in Nigeria Excludes and Why

The National Economic Council (NEC) has handed the Nigerian Education Loan Fund (NELFUND) the relevant rights for the student loan scheme.

Its key reasons are to ensure sustainable and transparent management of the student loan scheme and to ensure that financial barriers for Nigerian students are addressed.

Who Can Benefit from the Student Loan Scheme

In general, students in public or government-owned) Institutions automatically qualify. Eligible students must be enrolled in federal or state tertiary institutions. Universities, polytechnics, colleges of education and vocational schools established by the government have full eligibility that applies to their students.

The only caveat is that students must provide of monthly family income that is below ₦500,000 per annum.

Another requirement is that applicants must provide two guarantors. Each must be either a civil servant of at least level 12, a lawyer with a minimum of 10 years post-call experience or a judicial officer or justice of the peace.

Who Is Not Eligible for the NELFUND Loan Scheme

Students in private tertiary institutions are explicitly excluded. Nigerian students studying abroad, in the diaspora, are not eligible, as the scheme applies only to students enrolled in institutions within Nigeria.

National Open University of Nigeria (NOUN) students are effectively excluded from the student loan scheme. This is due to the requirement of a JAMB registration number, which NOUN students typically don’t have.

While these might sound obvious, the eligibile categories also excludes However, this decision does not include postgraduate or research students were not newly included by the National Economic Council (NEC) in the Nigeria student loan scheme.

According to official clarifications from the Nigerian Education Loan Fund (NELFUND), the current student loan scheme is focused exclusively on supporting students pursuing their first degree (undergraduates). Postgraduate students are explicitly excluded from the scheme at this time.

The initiative’s aim is to increase access to higher education in some parts of the county, as the Southeast has been excluded for administrative reasons. It aims to reduce dropout rates by providing transparent and interest-free financial support to qualified Nigerian students.