With the introduction of the Nigerian Education Loan Fund (NELFUND), thousands of students across Nigeria now have access to a life-changing opportunity: interest-free student loans for higher education. But as with any new government initiative, misinformation and myths can spread rapidly. These false beliefs can discourage eligible students from applying, mislead applicants, or result in avoidable mistakes.
Let’s dive in and clear up the most common misconceptions about the NELFUND loan scheme in 2025.
Myth 1: NELFUND is Only for University Students
Truth: NELFUND is available to students in federal and state-owned universities, polytechnics, colleges of education, and vocational training centers.
This is one of the most misleading myths. The Federal Government designed NELFUND to be inclusive and non-discriminatory. Whether you’re studying engineering in a polytechnic or education in a college of education, you can apply — as long as you’re in a public institution.
Myth 2: You Must Start Paying Back the Loan Immediately After Graduation
Truth: NELFUND loans are repayable only after you secure a job and begin earning an income.
The law stipulates that repayment begins two years after NYSC or upon gaining employment, whichever comes first. This gives graduates a financial cushion to settle into the job market.
Myth 3: NELFUND Loans Come with Hidden Interest Rates
Truth: NELFUND loans are completely interest-free, meaning you only pay back the exact amount you borrowed.
There are no hidden charges, no compounding fees, and no penalties as long as you stick to the repayment terms. This makes it one of the most student-friendly loan schemes in Africa.
Myth 4: You Must Know a Politician to Get Approved
Truth: The application and approval process is digital, transparent, and merit-based. You don’t need political connections.
NELFUND uses a centralized online portal (https://nelf.gov.ng) to handle applications, documentation, and disbursement. Every applicant is treated equally based on merit, not influence.
Myth 5: The Loan Only Covers Tuition Fees
Truth: The NELFUND student loan covers tuition fees, accommodation, books, feeding, and transportation.
Although the amount disbursed depends on your financial need and institution type, the loan is designed to support the holistic cost of education.
Myth 6: If You Default, You’ll Be Imprisoned Immediately
Truth: While defaulting on a government loan has legal consequences, the law provides structured repayment plans and flexibility.
Defaulting doesn’t result in automatic imprisonment. Instead, there are debt management protocols like salary deductions or payment restructuring to help borrowers.
Myth 7: You Can’t Apply More Than Once
Truth: You can reapply for the NELFUND loan each academic year, especially if you were denied due to incomplete documentation or changes in financial status.
Many students wrongly assume one rejection is final. In truth, the application window is open annually, and you’re free to try again once issues are corrected.
Myth 8: Only First-Year Students Can Apply
Truth: Students at any level of their academic journey (100–500 level) can apply for the loan, as long as they meet the eligibility criteria.
Returning students are especially encouraged to apply to avoid dropping out due to rising costs.
Myth 9: Guarantors Must Be Rich or Politically Powerful
Truth: The required guarantors must be civil servants, lawyers, or professionals — not necessarily wealthy or influential.
As of 2025, discussions are ongoing to revise the guarantor system, making it even easier for indigent students to comply.
Myth 10: The Application Process is Complicated and Takes Forever
Truth: The entire application is online, user-friendly, and takes under an hour with the right documents.
Once submitted, it may take 30–60 days for review, but updates are sent via SMS or email. There’s also a support system available for technical issues.
Bonus: Key Documents You’ll Need for NELFUND Application
- Admission letter from your institution
- National Identity Number (NIN)
- BVN (Bank Verification Number)
- Guarantor details (2 individuals)
- Passport photograph
- Academic transcripts or latest result
- Proof of income or indigency
When Will NELFUND Start Disbursing Loans in 2025?
Expected Timeline:
- January – April 2025: Application window
- May 2025: Application verification
- June 2025: Approval notifications
- July 2025: First batch disbursement
Frequently Asked Questions (FAQs)
Q: Can private university students apply for NELFUND?
A: No. The loan is strictly for students in federal and state-owned institutions.
Q: Is there an age limit to apply for NELFUND?
A: Currently, there’s no official age limit, but applicants must be active students.
Q: What happens if I fail a course?
A: You must maintain good academic standing, but failing one course won’t automatically disqualify you from future loans.
Q: Can I apply with an OND or HND?
A: Yes. The loan is available for both OND and HND programs.
Final Thoughts: Don’t Let Myths Block Your Future
The NELFUND Student Loan is a transformative opportunity for thousands of Nigerian students. Unfortunately, false information and rumors have discouraged many from taking the bold step of applying. By debunking these top 10 myths, we hope more students will take full advantage of the interest-free, accessible, and government-backed student loan program.
If you’re eligible, don’t wait. Visit the NELFUND portal, gather your documents, and start your application today. The dream of quality education should not be denied because of financial limitations.