The Nigerian Education Loan Fund has announced the disbursement of a total of ₦107.7 billion to 581,878 student beneficiaries across the country, a move already credited with reducing dropout rates and widening access to tertiary education.

According to the agency, the total disbursement covered ₦61.3 billion in institutional fees and ₦46.3 billion designated for upkeep allowances.

By the closure of the 2024/2025 academic session portal on September 30th, 2025, NELFUND had received 846,462 applications. The portal is scheduled to reopen in October for the 2025/2026 academic session.

The Managing Director of NELFUND, Akintunde Sawyerr, emphasized that the loans are structured on zero interest, a strategic decision taken to make the scheme more attractive given the current economic challenges and public skepticism towards borrowing.

Sawyerr explained the reasoning behind the scheme’s unique structure, stating: “Given the word ‘loan’ has often carried a negative perception in Nigeria, we deliberately chose to make this scheme interest-free. Our research showed that this would encourage more students to stay in school and pursue tertiary education.”

He further explained that before NELFUND’s establishment, many students who had spent three or four years in school were forced to drop out due to sudden financial setbacks in their families. The introduction of the scheme, he noted, has significantly reduced dropout rates and encouraged more young people to transition from secondary to tertiary education.

The loan comes with flexible repayment terms, as beneficiaries are not required to make any repayments during their studies or national service year. Repayment obligations only begin two years after the completion of the NYSC program.

For those in formal employment, employers are legally mandated to deduct 10% of the beneficiary’s salary and remit it to NELFUND. However, repayment halts if the individual loses their job, making it effectively a pay-as-you-earn scheme.

Sawyerr also stressed that while the terms are soft, the scheme is not a grant. He urged students to be deliberate in choosing courses of study that are aligned with employability and national development needs.

He added that the name of the scheme serves as a reminder of the obligation, stating: “The word ‘loan’ serves as a reminder that repayment is expected. We want beneficiaries to think carefully about their choices so they can secure careers that enable them to repay comfortably.”

He concluded that with its interest-free structure and supportive repayment plan, the NELFUND loan scheme is emerging as one of the softest and most student-friendly education finance initiatives, with early evidence showing a positive impact on Nigeria’s education retention and access.