When the Nigerian Education Loan Fund (NELFUND) opened its application for undergraduates in government-owned institutions in May 2024, applicants encountered different issues, from institution not found to unknown details
To resolve the issue, the Fund directed institutions to send their students’ data to the loan agency so that applicants will have seamless application.
Getting the loan isn’t just about creating a profile on student loan portal, but there are seven procedures institutions, NELFUND, and applicants must adhere to for tuition and upkeep loans to be disbursed.
1) Institution Submit Students’ Data To NELFUND
Government-owned institutions must provide accurate data of their students to NELFUND, which is then uploaded on NELFUND Student Verification System (SVS). By sending the complete data of their student to the Fund, it not only allows them to find the name of their institution on the NELFUND database, but also allows applicants’ data including their JAMB registration number to synchronise with the one sent by their institution.
Implication of non-compliance: Should your institution fail to forward your data to NELFUND, you will encounter application errors, in most cases, the name of your school will not be found in the Fund portal.
2) Sensitize Potential Applicant About Eligibility
Both NELFUND and the institutions have a role to play. Apart from the radical sensitization the Fund has embarked on, it is also the duty of the institutions to inform their students about funding opportunities.
For instance, the University of Ibadan disclosed a few weeks ago that it will create a special question and answer page for its students about the loan. Other institutions should do the same.
That’s how it should work, the institutions through Student Affairs Units are closer to the students than NELFUND is, their collaboration will help.
3) Student Create and Submit Loan Application on NELFUND Portal
The students act on the information available to them. For those who need financial support for their undergraduate degrees, they move ahead to create a profile on NELFUND portal and apply by providing basic details such as their National Identification Number (NIN), JAMB number, Bank Verification Number (BVN), and Matriculation number.
4) NELFUND Receives Application and Begins Processing
Upon receipt of student application , the Fund processes each by verifying the details provided and approving those that meet the criteria.
5) NELFUND Sends Approval Notification to Institutions
NELFUND compiles a list of approved student loans and sends the list to the respective institutions for further verification.
6) Verification By Institutions
The institutions review the list, confirming the authenticity and accuracy of the student information and loan approvals. The verified list is signed off by institutions authority and returned to NELFUND.
It is at this stage that you will see “APPROVED” on your NELFUND portal. When you are approved, you should look out for not just disbursement of tuition fee, but also upkeep loan (monthly allowance to keep body and soul together).
Implication of non-compliance: If an institution fails to verify the information sent to them NELFUND, there will be delay in disbursement. In most cases, NELFUND will not disburse the loan if the institution fails to confirm that “yes, the applicant is our student and his details are accurate”.
7) Disbursement of Institutional Fees
When NELFUND receives the verified list from the institutions, disbursement begins. While the institutional fees are paid directly to the institutions on behalf of the students, the students receive the monthly upkeep loans in their bank accounts.
If during the application process you applied for only institutional loans, we receive a report from the management of the Fund that a button to apply for the upkeep loan will be added very soon. We have covered this and solutions to other student loan-related questions on a dedicated page.
8) NELFUND Publishes List of Institutions That Received Disbursement
The management of the Fund makes it public the names of institutions that have received institutional loans on behalf of their students. In the past weeks, we’ve seen institutions acknowledging the receipt of the loans.
Conclusion
This coordinated process will make the application seamless. This process will not make any region feel marginalised. The loan is for every qualified undergraduate Nigerian student in government-owned institutions.
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