The Nigerian Education Loan Fund (NELFUND) has become a lifeline for many undergraduates and postgraduate students across Nigeria, offering access to tuition and upkeep loans to help cover essential living expenses. However, a new policy shift has emerged—NELFUND will stop disbursing upkeep loans during school holidays.
This decision is already sparking debates among students, parents, and education stakeholders. In this post, we’ll break down why NELFUND is making this move, how it impacts students financially, and what alternatives learners can consider during academic breaks.
 What is NELFUND and Its Role in Nigerian Education?
The Nigerian Education Loan Fund (NELFUND) was created to provide students with loans to cover:
- Tuition fees
- Upkeep/living expenses (accommodation, food, transportation, study materials)
- Other academic-related costs
Since its introduction, NELFUND has been instrumental in reducing financial barriers to higher education, ensuring that qualified students—regardless of economic background—can access learning opportunities.
For many, upkeep loans have been particularly crucial, as they support daily survival during semesters. This is why the recent decision to stop upkeep loans during school holidays has become such a major talking point.
 The New NELFUND Policy: Stopping Upkeep Loans During Holidays
According to official statements, NELFUND will no longer disburse upkeep loans when students are on holiday. The rationale is simple: upkeep loans are designed to support students while actively studying, attending lectures, and staying on campus—not when they are at home.
This change means that:
- Students will continue to receive tuition fee support, paid directly to their institutions.
- Upkeep stipends will only be available during active academic sessions.
- No maintenance allowances will be released during semester breaks, strikes, or long holidays.
 Why is NELFUND Stopping Upkeep Loans During School Holidays?
The decision is influenced by several factors:
- Preventing misuse of funds – Reports suggest some students misuse upkeep allowances during holidays on non-academic expenses.
- Cost-saving measures – With thousands of applicants nationwide, NELFUND seeks to streamline its budget.
- Accountability and monitoring – It is easier to track and justify upkeep support when students are actively engaged in academic activities.
- Encouraging responsibility – By halting upkeep loans during holidays, students are expected to explore other sources of income or internships.
 Impact on Students Across Nigeria
This new policy has both positive and negative implications.
 Positive Impacts
- Ensures upkeep loans are used for the intended purpose (academic support).
- Reduces government expenditure on students not in session.
- Encourages students to seek internship opportunities, part-time jobs, or entrepreneurial ventures during breaks.
 Negative Impacts
- Many students from low-income backgrounds may struggle financially during holidays.
- Students living far from home may find it harder to sustain themselves without upkeep stipends.
- Could increase financial pressure on parents and guardians during breaks.
 What Alternatives Do Students Have During Holidays?
Since upkeep loans won’t be available during holidays, students must explore other strategies to stay afloat financially:
- Part-Time Jobs – Taking up temporary employment (retail, hospitality, or tutoring) can help cover living costs.
- Internships – Many organizations offer holiday internships that come with stipends. This provides both experience and financial support.
- Freelancing – Students can leverage digital platforms to offer services such as writing, graphics design, or virtual assistance.
- Entrepreneurship – Small businesses like catering, tech services, or online sales can generate income during holidays.
- Parental/Guardian Support – Families may need to step in more actively during breaks.
 How Universities and Colleges Can Help
Higher institutions can also support students affected by this policy by:
- Expanding internship programs with local companies.
- Offering work-study opportunities within the school environment during breaks.
- Collaborating with NGOs to provide financial literacy and entrepreneurial training for students.
 Student Reactions to the Policy
The announcement that NELFUND will stop upkeep loans during school holidays has triggered mixed reactions:
- Some students feel it is fair and logical, as upkeep should only apply when in school.
- Others see it as a harsh policy that disregards students’ real financial struggles during breaks.
- Student unions across some universities have already called for reconsideration or partial support during holidays.
 Final Thoughts
The news that NELFUND will stop upkeep loans during school holidays is a major policy shift in Nigeria’s student loan scheme. While it might reduce misuse and save costs for the government, it undoubtedly places financial pressure on students, especially those from less privileged backgrounds.
For students, this is the time to build financial resilience—exploring part-time jobs, freelancing, and entrepreneurship. For institutions and policymakers, it is essential to provide complementary support systems to ensure students don’t suffer during breaks.
Education should remain a priority, and while policies evolve, the ultimate goal must always be to ensure accessibility, affordability, and fairness in higher education.
