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The short answer
There is no government student loan for private university fees in Nigeria: NELFUND's managing director said in April 2024 that the fund was not looking at private universities. Families paying private fees use bank personal or salary loans, the university's own instalment plan, cooperatives and employer loans instead. Ask the university about instalments first, because a plan without interest costs less than any loan.
Why NELFUND does not cover private fees
The Nigerian Education Loan Fund pays institutional fees directly to the school and an upkeep stipend to the student, and graduates repay through a 10% deduction from monthly salary starting two years after NYSC, according to the scheme's published terms. In April 2024, NELFUND's managing director, Akintunde Sawyerr, said the fund was "not looking at private universities today, even though the president said we should", describing it as a social programme aimed at families with the least means (ThisDay, 24 April 2024).
Policies can change. Before ruling it out, check the eligibility notes on NELFUND's own portal; our guide to NELFUND and private university students tracks this question.
The routes that exist
| Route | How it works | What it asks for |
|---|---|---|
| University instalment plan | Fees split across the session, paid to the school | Admission letter, signed plan; sometimes a first deposit |
| Bank personal or salary loan | Cash loan to a parent or sponsor, repaid monthly | Salary account, payslips, statements, ID, BVN |
| Employer school fees loan | Advance repaid from salary | Staff policy, approval by HR |
| Cooperative loan | Loan as a multiple of your savings | Membership period, guarantors |
| Pay-later school fees providers | Provider pays the school, parent repays | Fee invoice, income evidence, ID, BVN |
Bank loans
Bank personal loans are the usual cash route for a full session's fees. Sterling Bank's payroll loan, for example, lists 39% a year with a 1% management fee and 2% insurance, up to 60 months, and caps repayments at 33.3% of net monthly salary (bank's page, October 2026). Stanbic IBTC asks for an account held at least six months, three months' payslips and six months' statements. Shorter products, such as GTBank QuickCredit at 2.95% a month for up to 12 months, suit smaller balances.
Instalment plans
Many private universities let families pay in parts. Terms differ by school: some split by semester, some charge a small administrative fee, and some withhold results until fees are cleared. Ask the bursary for the policy in writing. Our explainer on paying school fees in instalments covers what to ask.
Employers and cooperatives
Larger employers and staff cooperatives often have education loans with lower costs than banks, repaid from salary. For workers covered by the Labour Act, total monthly deductions cannot exceed a third of wages.
Pay-later providers and direct payment
Some finance providers pay the university on your behalf and collect from you monthly. Paying the school directly is common because the lender can be sure the money goes to fees, and the FCCPC's 2025 digital lending regulations recognise lending paid to a third party for a purchase. Whatever the label, you sign a loan agreement and owe the provider, not the school. Ask for:
- the total you will repay, in naira, and the number and dates of instalments;
- how interest is charged (per month, per year, flat or reducing) and every fee;
- what happens if a payment is late, and whether the school is told;
- whether you can repay early without a charge.
If the provider operates through an app, check that it is listed on the FCCPC's register of approved digital lenders. Banks and CBN-licensed lenders are supervised by the CBN instead.
Plan for the whole degree
A private degree usually runs four or five sessions, and fees often rise. Borrowing a full session each year can stack loans on top of each other if each one runs for twelve months. Before you borrow for year one, sketch how years two and three will be paid, and whether savings during the year can reduce the next loan.
Worked example: one session's fees
Example only. A parent borrows ₦3,000,000 for a session's fees on a bank loan at 39% a year (3.25% a month on a reducing balance), repaid over 12 months, with a 1% management fee and 2% insurance:
- Monthly instalment
- about ₦305,902
- Total repaid
- about ₦3,670,819
- Interest
- about ₦670,819
- Fees (1% + 2%)
- ₦90,000
- Total cost
- about ₦760,819
To fit a 33.3% repayment cap, that parent would need net pay of roughly ₦920,000 a month. If the university instead accepted two equal payments without a charge, the cost of spreading the fees would be zero. A loan makes sense where the school demands full payment upfront and the family cannot raise it.
What to check first
- Ask the university for its instalment policy and any charge for paying late.
- Check NELFUND's portal in case eligibility has changed.
- Ask your employer and cooperative about education loans before going to a bank.
- Compare bank offers on total cost, not monthly rate alone, and plan for four or five years of fees, not one.
- If a provider pays the school directly, read the agreement: you are the borrower and owe the provider.
Where Pryme fits
Where a school is part of Spaces, Loans on Spaces from Solid Allianze MFB can be spent there once you accept an offered limit and its agreement. See paying school fees with Loans on Spaces. Saving ahead in a Savings Box reduces what you need to borrow.
Questions people ask
Does NELFUND cover private universities?
NELFUND's managing director said in April 2024 that the fund was not looking at private universities. Check the NELFUND portal for current eligibility before applying.
Which bank gives loan for private university school fees?
Most banks' personal and salary loans can be used for fees. Examples include Sterling's payroll loan and Stanbic IBTC personal loans; requirements centre on a salary account, payslips and statements.
Can I pay private university fees in instalments?
Many private universities offer instalment plans. Ask the bursary for the terms in writing, including any charge and what happens if a payment is late.
Is there an education loan for private university students in Nigeria?
Not from government. Options are bank loans to parents, employer or cooperative loans, school instalment plans and pay-later providers that pay the school.
Sources
- NELFUND: Student Loan Initiative terms · accessed Oct 2026
- ThisDay: NELFUND boss on why private university undergraduates cannot access student loan (24 Apr 2024) · accessed Oct 2026
- Sterling Bank: Loans · accessed Oct 2026
- Stanbic IBTC: Loans FAQs · accessed Oct 2026
- FCCPC: Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 · accessed Oct 2026
- FCCPC: Approvals of Digital Money Lenders (register, updated Mar 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.