The Nigerian Education Loan Fund (NELFUND) has taken a significant step toward alleviating the financial burden of students by disbursing over ₦489 million in loans to 2,271 students at Ladoke Akintola University of Technology (LAUTECH). This initiative underscores the government’s commitment to making higher education more accessible for Nigerian students.
A Breakdown of NELFUND’s Disbursement to LAUTECH Students
The loan disbursement process occurred in three phases:
- September 5, 2024 – A total of ₦8.67 million was disbursed to 52 students.
- November 1, 2024 – A sum of ₦83.92 million was allocated to 666 students.
- March 5, 2025 – The largest disbursement of ₦397.15 million benefited 1,553 students.
This initiative reflects the government’s proactive approach to reducing financial constraints that hinder students from completing their education.
Also Read: NELFUND Student Loan Application 2025 – Step By Step
Understanding the NELFUND Loan for Nigerian Students
The NELFUND student loan is an interest-free financial assistance program designed to help students pay for tuition and other essential academic expenses. Unlike traditional student loans that accumulate high interest rates, NELFUND aims to ensure that students graduate without excessive debt burdens.
Key Features of the NELFUND Loan
- Covers Tuition Fees: The loan covers the full cost of tuition, which is paid directly to the institution.
- Monthly Stipends: Eligible students can receive a ₦20,000 monthly stipend to cover living expenses.
- Flexible Repayment Terms: Loan repayment begins one year after completing the National Youth Service Corps (NYSC) program.
- Affordable Repayment Plan:
- Employed graduates contribute 10% of their monthly salary.
- Self-employed graduates remit 10% of their monthly profit.
The Impact of NELFUND Loans on LAUTECH Students
1. Increased Access to Higher Education
Before the launch of NELFUND, thousands of students struggled to pay tuition fees, forcing some to defer or abandon their education. With this loan program, more students now have the financial stability to complete their studies without disruptions.
2. Reduced Dropout Rates
The inability to pay tuition has historically led to high dropout rates among Nigerian university students. With NELFUND’s intervention, LAUTECH students can now focus on their academics rather than worrying about school fees.
3. Financial Independence for Students
The inclusion of a monthly stipend ensures that students can afford basic needs, including accommodation, transportation, and learning materials. This has greatly improved student welfare, reducing reliance on external financial support from family members.
4. Promotion of Entrepreneurship Among Graduates
With the flexible repayment structure, self-employed graduates are required to remit only 10% of their monthly profit. This encourages entrepreneurship by allowing graduates to establish businesses while repaying their loans gradually.
How LAUTECH Students Can Apply for the NELFUND Loan
Applying for the NELFUND loan is a straightforward process. Interested students should follow these steps:
Step 1: Visit the NELFUND Portal
Students should go to the official NELFUND website: https://nelf.gov.ng/
Step 2: Create an Account
- Click on the ‘Apply Now’ button.
- Register with a valid email address and phone number.
- Choose a secure password and confirm the email verification.
Step 3: Complete the Application Form
- Fill in your personal details (full name, date of birth, state of origin, etc.).
- Provide your student identification details, including your Matriculation Number and institution name.
- Select your loan category (tuition only or tuition + stipend).
- Upload the required documents (admission letter, tuition invoice, and identification documents).
Step 4: Submit the Application
- Review all the entered details to ensure accuracy.
- Click ‘Submit’ and wait for an email notification confirming successful submission.
Step 5: Monitor Application Status
- Log in to the portal regularly to check for updates.
- If approved, the tuition fees will be sent directly to the institution, while stipends (if selected) will be credited to the student’s bank account monthly.
Challenges Faced in the NELFUND Loan Disbursement Process
While the NELFUND initiative is a major breakthrough, some challenges have been reported:
1. Delays in Loan Approval and Disbursement
Some students across various institutions have experienced delays in receiving their loans, leading to concerns about meeting tuition deadlines and exam schedules.
2. Low Awareness Among Students
At LAUTECH, only 717 students had applied for the loan as of early 2025. This figure is relatively low compared to the total student population, suggesting that many students may still be unaware of the program or its benefits.
3. Strict Eligibility Criteria
Some students fail to meet the eligibility requirements due to incomplete documentation or errors in their application forms. Proper sensitization and guidance from school administrators can help mitigate this issue.
What’s Next for the NELFUND Loan Program?
The Nigerian government plans to expand the NELFUND program to accommodate more students and ensure a faster disbursement process. Some key areas of improvement include:
- Increased Funding: More budget allocation to support additional students.
- Awareness Campaigns: Educating students on the application process and benefits.
- Streamlined Disbursement: Faster processing to prevent delays in tuition payments.
- Inclusion of More Universities: Expanding to cover more institutions beyond LAUTECH.
Conclusion: A Brighter Future for LAUTECH Students
The ₦489 million loan disbursed to 2,271 LAUTECH students marks a significant milestone in Nigeria’s education sector. With interest-free loans, flexible repayment plans, and monthly stipends, NELFUND is providing students with the financial support needed to complete their education without stress.
For students who are yet to apply, the time is now! Visit https://nelf.gov.ng/ and secure your future today.
What are your thoughts on the NELFUND loan program? Let us know in the comments!