All you need to know about the new student loan law
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All you need to know about the new student loan law
Last updated July 21, 2026
Key Takeaways
Nigeria's student loan law established NELFUND to provide interest-free loans that improve access to higher education.
Eligible students can apply for funding to cover tuition, living expenses, and other approved education-related costs.
Applicants must undergo identity and academic verification to confirm their eligibility for the programme.
Loan repayments begin two years after completing the NYSC programme, with provisions for debt forgiveness in certain circumstances.
Lenders can use loan management platforms like Lendsqr to streamline the administration of educational loans.
Eseose Animhiaga
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Young Itunu dreamt of becoming a doctor. Her only surviving parent, a weaver, worked tirelessly to support the family, but higher education felt out of reach because of the costs involved. Despite these challenges, Itunu remained one of the top students in her local secondary school.
As she helped her mother weave intricate patterns, she imagined herself one day helping patients in a hospital. But like many students, financial barriers stood between her and her dreams.
Itunu’s story reflects the experience of many Nigerian students whose educational ambitions are limited by a lack of funding. The new student loan law aims to change that by making higher education more accessible.
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The legal details can feel overwhelming, so here’s a simple breakdown of the main points.
1. Who can apply?
The loan is available to students enrolled in eligible post-secondary institutions, including:
Universities
Polytechnics
Colleges of Education
Institutions established by federal or state governments
Approved vocational and skills acquisition centres
2. What can the loan be used for?
Student loans are designed to cover education-related expenses, including:
Tuition fees
Upkeep and living expenses
Other approved educational costs, including medical expenses where applicable
The loans are intended to support learning and should be used for educational purposes.
3. How will students be verified?
Like any loan programme, verification is important to ensure funds go to eligible students.
Verification may include:
National Identification Number (NIN)
Bank Verification Number (BVN)
WAEC or NECO records
JAMB records
Evidence of admission
Academic records for returning students
Credit history, where available
4. What is NELFUND?
NELFUND is the agency responsible for administering student loans.
According to the law, part of the funding for the programme comes from a percentage of taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS), which are allocated to support the fund.
5. How do disbursement and repayment work?
To ensure funds are used appropriately, loan payments are made directly to educational institutions on a semester or annual basis.
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