Student Loan (Access to Higher Education) Act 2024

An Act establishes the Nigeria Education Loan Fund (NELFUND) to manage interest-free loans for students pursuing higher education. The fund covers tuition, fees, and upkeep for both tertiary and vocational programs without requiring a guarantor or checking family income. Repayment begins two years after NYSC service through a manageable salary deduction.

What Is This Policy?

An Act establishing the Nigeria Education Loan Fund (NELFUND) to provide interest-free student loans for tuition, fees, and living expenses to eligible students in Nigerian tertiary and vocational institutions.

Who Does It Target?

Nigerian students enrolled in federal and state tertiary institutions (universities, polytechnics, colleges of education) and vocational/technical programmes. NELFUND as the administering body. Federal government ministries, banks, and employers involved in disbursement and repayment.

What Does It Aim to Achieve?

Expand access to higher education by removing financial barriers, particularly for students from low-income families. Eliminate the guarantor requirement and family income conditions that limited access under the earlier 2023 Act. Ensure sustainable loan repayment through post-NYSC salary deductions.

Key Features

  - **NELFUND Established**: Nigeria Education Loan Fund—corporate entity managing interest-free loans.
  - **Expanded Coverage**: Loans now cover tuition, fees, and upkeep (₦20,000/month) for tertiary institutions as well as vocational/technical skills programs.
  - **Barriers Removed**: No guarantor requirement (previously required 2 civil servants). No family income cap. No parent loan history check.
  - **Funding**: 1% of federal taxes/levies allocated to the General Reserve Fund.
  - **Repayment**: Starts 2 years post-NYSC with a 10% salary deduction.

Legal Framework

Constitution of the Federal Republic of Nigeria 1999 (Section 18 on education); Education (National Minimum Standards and Establishment of Institutions) Act; Tertiary Education Trust Fund Act; Nigerian Education Loan Fund Act 2024 (principal Act)

Current Status

In force. Signed by the President in April 2024. NELFUND is being operationalised for loan disbursement.