In a move that has generated mixed reactions across the country, the Nigeria Education Loan Fund (NELFUND) has announced that it will no longer disburse student upkeep loans during school holidays. The decision, according to the management, is part of a new restructuring plan aimed at streamlining the disbursement process, preventing abuse of the funds, and ensuring the loans are used strictly for educational purposes.
The upkeep loan scheme was initially introduced to provide financial relief for students in Nigerian tertiary institutions by covering their living expenses, feeding, transportation, and other non-tuition-related needs. For many undergraduates and postgraduates, especially those from low-income families, this initiative had served as a lifeline throughout the academic session.
However, with the new directive, upkeep loan disbursement will now be limited strictly to active academic periods, meaning students will not receive any financial support from NELFUND during semester breaks, long vacations, or strike-induced holidays.
A statement signed by NELFUND’s spokesperson explained:
“The purpose of the upkeep loan is to ease the financial burden of students during active academic engagement. It is not designed to function as a permanent source of income during periods when schools are not in session. By suspending disbursement during holidays, NELFUND seeks to protect the integrity of the program, prevent misuse, and ensure funds are reserved for genuine academic needs.”
This announcement has triggered heated debates across campuses nationwide. Many students have expressed disappointment, arguing that the cost of living remains a challenge even when schools are on break. For some, the upkeep loan had become their primary means of survival, as they struggled to support themselves in the absence of family financial backing.
A 200-level student of the University of Lagos, who pleaded anonymity, lamented:
“They don’t understand that students still have to pay rent, buy food, and transport themselves during holidays. Many of us are not going back to rich homes where everything is waiting for us. This decision will make life tougher.”
Conversely, some education stakeholders have welcomed the move, stressing that the loan should not turn into a welfare package but remain tied to academics. They argued that the pause in disbursement during holidays will help reduce cases of students diverting funds into non-essential activities, such as partying, gambling, or luxury spending.
Despite the controversy, NELFUND has reassured students that upkeep loans will resume immediately at the start of every semester, along with tuition loans for those eligible. The management further hinted that discussions are ongoing to create a holiday support alternative in collaboration with NGOs and state governments, particularly for students facing severe economic hardship during school breaks.
As the 2025 academic calendar progresses, all eyes will be on how students and institutions adapt to this new financial policy. The big question remains: will this restructuring strike the right balance between accountability and the pressing realities of student life in Nigeria?
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