Loan for Students in Nigeria: The Ultimate Guide to Funding Your Education in 2026
Getting a loan for students in Nigeria has become significantly easier with the full rollout of the National Education Loan Fund (NELFUND). However, while NELFUND serves public institutions, students in private universities or those heading abroad need different financial tools. This guide covers every available option for 2026.
1. NELFUND: The Best "Zero Interest" Loan for Students
For students in Federal and State-owned tertiary institutions, NELFUND is the gold standard.
Interest Rate: 0% (Interest-free).
What it covers: 100% of institutional charges (tuition) and a monthly upkeep allowance (up to ₦25,000).
Repayment: Starts 2 years after your NYSC program.
Key Requirement: A valid NIN, BVN, and JAMB Number.
2. Private School Fees Loans (Commercial Banks)
If you are in a private university like Babcock, Afe Babalola, or Covenant, you are likely not eligible for NELFUND yet. You should look at "School Fees Advance" products from commercial banks.
Access Bank (Advance for School Fees): Offers up to ₦20 million for tuition.
First Bank (FirstEdu): Targeted at parents and students for flexible tuition payments.
Pros: Fast disbursement (often within 24 hours).
Cons: High interest rates (averaging 23% in 2026) and usually requires a parent/guardian as a co-signer.
3. International Student Loans (Study Abroad)
For Nigerians heading to the US, UK, or Canada, "no-collateral" international loans are the best path.
MPOWER Financing: No cosigner or collateral required for graduate students.
Prodigy Finance: Focuses on STEM and MBA students at top global universities.
Comparison: Which Student Loan is Right for You?
| Loan Type | Provider | Interest Rate | Best For |
|---|---|---|---|
| Government Loan | NELFUND | 0% (Interest-Free) | Public Uni Students |
| Bank Advance | Access/First Bank | 20% - 25% | Private Uni Students |
| International | MPOWER/Prodigy | 9.9% - 14% (USD) | Masters Abroad |
Frequently Asked Questions
Yes. NELFUND does not require a guarantor. Similarly, international lenders like MPOWER do not require a cosigner or collateral for Nigerian students in specific programs.
During your NELFUND application, you must check the "Upkeep" box. If you only select "Tuition," you will not receive the monthly stipend.
NELFUND covers the full tuition set by your institution. For private bank loans, you can borrow up to N20 million depending on your guardian's income.
