NELFUND Disburses ₦86.3bn Student Loans to 450,000 Beneficiaries

The Nigerian Education Loan Fund (NELFUND) has announced a significant milestone in its student loan scheme, disbursing a total of ₦86.3 billion to assist nearly 450,000 students across the country. The official announcement was made in the fund’s latest status report, released on Monday.

According to the report, the disbursed amount has benefited 449,039 students since the scheme’s portal became operational on May 24, 2024. The funds are split into two key categories to cover the core needs of student beneficiaries: ₦47.6 billion was paid directly to 218 institutions for institutional fees, while the remaining ₦38.7 billion was provided to students as upkeep allowances.

This disbursement reflects the Federal Government’s commitment to improving access to higher education by alleviating financial burdens on students and families. The scheme, which is managed by NELFUND under the leadership of its Managing Director, Akintunde Sawyerr, provides interest-free loans to eligible students attending public tertiary institutions.

Repayment for the loans is structured to begin two years after a beneficiary completes their National Youth Service Corps (NYSC) program, providing a crucial grace period for graduates to secure employment. The NELFUND law was also recently amended to allow for contributions from non-governmental sources, a move aimed at enhancing the scheme’s sustainability and expanding its reach.

This significant disbursement marks a rapid expansion of the program. A report from a little over a month ago had indicated a lower total of ₦73.1 billion disbursed to 366,247 students, highlighting the swift pace at which the program is reaching more students.