Graduates who benefited from the Nigerian Education Loan Fund (NELFUND) will have their loan repayments linked to their earnings, with monthly deductions limited to 10 per cent of their gross income.

The arrangement is provided under the Students Loans (Access to Higher Education) Act, 2024, which established NELFUND to provide financial assistance to Nigerians pursuing tertiary education, vocational training and skills development.

Rather than requiring beneficiaries to pay a fixed amount every month, the law connects repayment to the income of each graduate. This means beneficiaries with lower earnings will make smaller repayments, while those with higher salaries will contribute more, subject to the 10 per cent ceiling.

For example, a graduate earning ₦200,000 in gross monthly income could have a maximum of ₦20,000 deducted for loan repayment. A beneficiary earning ₦500,000 could have up to ₦50,000 deducted.

When Repayment Begins

Beneficiaries are expected to begin repaying their loans after completing their studies and securing employment.

However, NELFUND cannot begin enforcement proceedings immediately after graduation. The law provides that enforcement action cannot be taken until two years after a beneficiary completes the National Youth Service Corps (NYSC) programme or receives an exemption from the programme.

Beneficiaries are also allowed to begin repaying their loans voluntarily before completing their studies if they choose to do so.

Protection for Graduates Without Jobs

The law recognises that not every graduate will find employment immediately.

A beneficiary who is unemployed and has no income can apply to NELFUND for additional time before repayment. The person must provide a sworn statement in accordance with the procedure established by the Fund.

This provision is intended to prevent graduates without an income from being placed under unnecessary financial pressure.

However, beneficiaries must provide accurate information. Anyone found guilty of submitting a false statement to NELFUND could face up to three years’ imprisonment.

NELFUND Records Over 850,000 Beneficiaries

The repayment arrangement comes as the Federal Government’s student-loan programme continues to expand.

As of July 3, 2026, NELFUND reported that it had processed 1,635,676 applications and recorded approximately 850,000 individual beneficiaries.

The Fund said it had disbursed about ₦303.9 billion under the scheme.

Of this amount, approximately ₦190 billion was used to cover institutional charges, while another ₦113.8 billion was provided as upkeep support for eligible students.

The number of applications is higher than the number of beneficiaries because some students have submitted multiple applications. As a result, the figure of about 850,000 represents individual beneficiaries rather than the total number of applications processed.

Employers to Assist With Loan Recovery

Employers will also play a role in the repayment process.

Under the law, employers are expected to contact NELFUND to determine whether a prospective employee has an outstanding student loan.

Where the Fund confirms that the employee is still indebted, the employer must provide information required by NELFUND to facilitate the recovery of the loan and applicable charges.

Employers who fail to comply with the requirement may face a fine of at least ₦2 million, imprisonment for a minimum of one year, or both.

Why the Repayment System Matters

NELFUND was created to operate as a long-term education financing institution. The idea is that money recovered from beneficiaries will help provide loans to future students.

The Fund’s General Reserve Fund is expected to receive money from several sources, including government appropriations, loan repayments, investment income, education bonds, grants, donations and other approved funding sources.

NELFUND can use these resources to provide loans for tuition, institutional charges, upkeep and other approved educational expenses.

The Fund is also required to maintain proper financial records and have its accounts audited annually by an independent auditor. It must publish its annual report within six months of the end of each financial year and submit its audited accounts to the President and the National Assembly.

The Challenge Ahead

As the number of beneficiaries increases, the ability of NELFUND to recover loans efficiently will become increasingly important.

The Fund will need to keep track of graduates, determine when they secure employment, identify their income and ensure that repayments are made in line with the law.

The 10 per cent limit gives graduates some protection by ensuring that loan deductions do not take an excessive share of their monthly earnings. At the same time, repayment allows NELFUND to recover funds and potentially use them to support another generation of students.

The long-term success of the scheme will therefore depend on finding the right balance between making education accessible and maintaining an effective repayment system.

How Students Can Apply for a NELFUND Loan

Students seeking financial assistance through NELFUND can apply through the Fund’s online portal.

Step 1: Register and Verify Your Details

• Visit the NELFUND application portal and select “Apply Now.”
• Enter your National Identification Number (NIN) and JAMB registration number.
• Select your public tertiary institution.
• Provide your matriculation number and confirm your date of birth.
• Enter your email address and create a password.
• Open the verification link sent to your email to activate your account.

Step 2: Complete Your Personal Profile

Once your account has been activated:

• Log in and provide your current phone number and residential address.
• Enter your Bank Verification Number (BVN).
• Add your commercial bank account information.
• Save your details and ensure that your profile is complete.

Step 3: Submit the Loan Application

• Select “Request for Student Loan.”
• Choose the option for institutional charges if you require assistance with tuition and other approved fees.
• Apply for upkeep support if you qualify and need the additional assistance.
• Upload the required documents, including your admission letter where applicable.
• Check all the information you have provided.
• Accept the declaration and terms and conditions.
• Submit the application.

The repayment arrangement under the 2024 Act is intended to make the student-loan system more manageable for graduates while allowing NELFUND to recover funds and continue extending financial support to future students.