By all measures, the student loan scheme has changed the game. Many children who were about to drop out of school have been spared by what is appropriately referred to as President Bola Tinubu’s flagship effort in the field of education. According to the DAMOLA KOLA-DARE and ABDULLATEEF FARUQ (UDUS) report, beneficiaries view it as the “light at the end of the tunnel,” despite detractors’ claims that it should be an “education grant” rather than a loan. Students have also dubbed it the “students’ savior.”
A Ray of Hope for Students
Paying tuition and other expenses continues to be a challenge for many students. It is understandable why some turn to what is commonly referred to as “hustling” in Nigerian culture to survive. Abdulsalam Adam Aduagba, who was unsure of how to pay his school tuition, is a prime example. He had no choice but to apply for the loan when assistance was lacking and his single parent was struggling to survive the economic slump. Although accommodations were an additional difficulty, he was reassured, and his anxieties about quitting school were reduced.
Impact of the Nigerian Education Loan Fund (NELFUND)
It is appropriate to refer to the Student Loan Scheme, which is run by the Nigerian Education Loan Fund (NELFUND), as a ray of hope. President Bola Tinubu’s unwavering dedication to ensuring that all students have access to education has revolutionized tertiary education in the nation.
Massive Financial Disbursement and Approval Rates
Since its establishment in May 2024 to March 2025, NELFUND has disbursed a total of N45.1 billion in student loans nationwide, which has been a fairly successful endeavor. As per the latest information on its official X page, 445,015 candidates have successfully applied for financial aid out of the 525,936 students who have enrolled on the loan platform. This indicates that 84 percent of student loan applications submitted through the program are approved.
It stated that as of March 25, 2025, the actual disbursement was N45.1 billion, even though a substantial N147.9 billion in cash had been approved. According to the report, N15.23 billion was distributed as upkeep allowances, while N29.86 billion had been granted for institutional fees.
NELFUND’s Funding Sources and Sustainability
This demonstrates the federal government’s dedication to helping students by making sure that those who qualify quickly obtain financial aid for their education.
As of late last month, NELFUND also revealed that the number of successful applicants had increased significantly, with a 192% increase in new registrants who were successful in their applications.
During a sensitization drive for students at Edo State University in Iyamoh last month, the agency’s managing director, Mr. Akintunde Sawyerr, said that the organization had adequate funding to serve Nigerian students, provided they were enrolled in any school in the nation and qualified.
“We have a lot of money so far. We applaud President Bola Ahmed Tinubu’s political will in granting us access to cash beyond the statutory allocation.
“We are permitted by law to raise money from non-governmental sources. It’s safe to state that a large number of Nigerians assist students with their tuition. Additionally, a few of these NGOs are now contributing money to NELFUND so that we may make the appropriate deployments.”
Repayment Plan and Employment Considerations
Sawyer pointed out that unless graduates find employment, NELFUND will not pressure them to pay back their debts.
“Until two years after completing their NYSC, the loanees are not required to repay the loans. Additionally, unless a person gets a job, they are not required to repay the debts even after two years.
There is a reporting requirement two years following NYSC so that we can determine the person’s current status. They do not make any payments to the NELFUND if they do not find employment within the next ten years, which is not the plan. Furthermore, the employer bears the responsibility for repayment, as they are legally required to provide us with a portion of the money they pay the employee in wages.
That’s 10 percent, according to our criteria. Therefore, it is intended to guarantee that the employer, who is benefiting from NELFUND’s assistance, is the one required to collect 10% and reimburse the fund even after this two-year moratorium.
Student Loan Testimonials: A Lifeline for Many
A 400-level political science student named Qozeem Sulyman Adekunle thinks the federal government’s program is offering unanticipated assistance.
“The happiness on students’ faces when they receive the maintenance is unfathomable,” Adekunle remarked, despite his modest financial circumstances.
He acknowledged that the policy had shortcomings, particularly the drawn-out verification procedure. The ability to make timely fee payments, however, changed everything for individuals who were granted the loan.
While some applicants encountered difficulties, Isiaka Qudus, a student in the Department of Accounting, was amazed at how the maintenance funds changed the feelings of the students. He described the relief that came with financial security by saying, “You will be emotionally and physically happy.”
Challenges and Concerns Raised by Students
Imran Sulaiman, a 400-level mass communication student at the Federal University of Kashere, Gombe State, depicted a struggle that hundreds of students across the country are accustomed to.
“As an undergraduate who depends entirely on my parents, life can be challenging,” he remarked. Sulaiman claimed that although his father, a former journalist, had tried his hardest, the financial pressures of college life were too much.
For him, the NELFUND program represented the difference between stability and uncertainty, not merely tuition funding.
The Student Loan Scheme as a Fulfillment of Promises
Umar Farouk, the student representative on the NELFUND board, believes the project was delivering a long-awaited promise.
About President Tinubu’s campaign promise, he said, “Children of nobody can now access higher education easily.” “Now that student loans are available, everyone can easily attend school,” he continued.
Presidential Recognition and Legislative Backing
The president has gotten additional plaudits for transforming the face of tertiary education via the Student Loan Scheme.
Praising the president, Senior Special Assistant on Students’ Engagement to the President Sunday Asefon said, “Asiwaju Bola Ahmed Tinubu has justified his mandate by making education easier for students. Since independence, no president has allowed students to receive interest-free loans to complete their postsecondary education and repay them once they begin working.
Conclusion
The Student Loan (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, was signed into law by the President in April of last year.
The Act gives the Nigeria Education Loan Fund (NELFUND) the authority to lend money to eligible Nigerian students for tuition, fees, and maintenance while they are enrolled at the nation’s authorized public postsecondary institutions as well as vocational and skill-building facilities.
In order to lower financial obstacles and increase educational accessibility for students from all socioeconomic backgrounds, the Student Loan Act 2024 was changed. More than 100 educational institutions around the country have provided loans to over 200,000 students, fulfilling the goal thus far.
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