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How Nigerian Student Loans Work: Eligibility, Application, and Repayment

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Not long ago, student loan was introduced in Nigeria by the Tinubu administration. But as with most things new, many students, parents, guardians and the rest of Nigerians do not know how this loan thing works. In this post, we'll look at student loan in Nigeria, how it works, who can apply and more.

Let's start with the "Student Loan Act"...

What is the Student Loan Act?

The Student Loan Act is a law that aims to help Nigerian students finance their higher education. It was recently revised to make the process smoother and more accessible for students that need the fincncial support.

Who is Eligible for the Student Loan?

To be eligible for a student loan in Nigeria, you need to:

  • Be a Nigerian citizen: Only Nigerian students can apply.
  • Gain admission: You must have been accepted into a public higher institution in Nigeria.

How to Apply for Student Loan in Nigeria

Applying for a student loan involves a number of steps and here is the breakdown:

  • Get Admission: Ensure you have been admitted to a public tertiary institution in Nigeria.
  • Complete Documentation: Gather necessary documents, including your admission letter, identification, and proof of citizenship.
  • Fill the Application Form: Obtain and fill out the application form from your institution or the National Education Loan Fund (NELF).
  • Submit Your Application: Submit the completed form along with your documents to the financial aid office of your institution.

How Much Can You Borrow?

The amount you can borrow depends on your course of study and your institution. Typically, loans cover tuition fees, accommodation, and other related expenses.

Repayment Terms

Repaying your student loan is designed to be manageable:

  • Grace Period: There is a grace period after graduation before repayment starts, giving you time to find a job.
  • Monthly Payments: Repayments are made in monthly installments, deducted from your salary by your employer.
  • Interest Rates: The interest rate is relatively low to make repayments affordable.

Benefits of the Nigerian Student Loan

  • Access to Education: Helps students from low-income families afford higher education.
  • No Collateral: You don’t need to provide collateral, just a guarantor.
  • Flexible Repayment: The repayment plan is spread over several years to reduce the financial burden.

Challenges and Considerations

  • Application Process: Ensure you follow the application process correctly to avoid delays.
  • Employment After Graduation: The success of the loan scheme relies on graduates finding employment to repay the loan.
  • Guarantor Requirement: Finding a qualified guarantor can sometimes be challenging.

Recommended: Lesson notes for teachers and students


The new student loan scheme in Nigeria is a great opportunity for students to pursue higher education without financial strain. By understanding the eligibility criteria, application process, and repayment terms, you can take full advantage of this initiative.

For more information, check the official publications and announcements from your institution or the National Education Loan Fund (NELF). Stay informed and start your application early to secure your educational future.

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