Nigeria’s Education Loan Fund to Halt Upkeep Loan Disbursements During School Holidays
In a move aimed at streamlining its loan disbursement process, the Nigerian Education Loan Fund (NELFUND) has announced plans to discontinue the disbursement of upkeep loans to students during school holidays. This decision is part of the fund’s efforts to ensure that loan disbursements are more closely tied to the academic sessions of individual institutions.
According to a statement signed by NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, students will only be entitled to upkeep loans for their current academic session. Once an institution’s academic year concludes, upkeep payments for that session will automatically cease. This means that students transitioning into a new academic year will no longer receive upkeep disbursements for the preceding session.
To be eligible for both institutional charges and upkeep for a particular session, interested loan applicants are required to apply for the loan at the beginning of every academic session. NELFUND has also advised institutions to upload their academic calendars and sessional information in a timely manner to guarantee that their students receive the full upkeep benefits due to them for an entire academic year.
As part of its efforts to ensure accuracy and transparency, the NELFUND loan portal is being automated to reflect this adjustment. The portal will henceforth display only the upkeep loans that have been collected by each student within the relevant session.
Since its inception, the NELFUND scheme has disbursed a total of ₦86 billion to 449,039 student beneficiaries nationwide, as of August 21, 2025. This move is expected to further optimize the fund’s operations and ensure that loan disbursements are more closely aligned with the needs of students and institutions.
By streamlining its loan disbursement process, NELFUND aims to promote greater efficiency and transparency in the management of its funds. This decision is also expected to have a positive impact on the overall effectiveness of the scheme in supporting the educational pursuits of Nigerian students.
