The Federal Government has revealed that the repayment process for the Nigeria Education Loan Scheme (NELFund) will commence two years after beneficiaries complete the National Youth Service Scheme (NYSC).
Dr. Akintunde Sawyer, the Executive Secretary of NELFund, made this disclosure during an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.
Sawyer explained that the two-year grace period following NYSC completion aims to give participants ample time to secure employment and achieve financial stability before commencing repayments.
While stressing that repayment will commence two years after NYSC completion for those who secure paid employment, Sawyer clarified that beneficiaries could repay earlier if they so desire.
However, in cases where beneficiaries do not secure employment two years after NYSC, they will not be compelled to repay the loan until they are financially capable.
Employers will have access to a register of loan beneficiaries, and they will be required to deduct 10 percent of the individual’s earnings and remit it to the fund through the payroll system.
Sawyer noted that the modalities for deducting the funds were still being finalized, but employers would be obliged to make deductions for as long as the beneficiary remains employed.
He emphasized that beneficiaries without employment or those who lose their jobs would not be obligated to repay the loan, adding that the aim is to assist Nigerians in need of better education to improve their lives and contribute to the country’s socio-economic development.
In the 2024 budget, the federal government allocated N50 billion to the student loan scheme, as detailed in the budget’s appropriation.
President Bola Tinubu also instructed the Nigeria Education Loan Fund (NELFUND) management to extend interest-free loans to Nigerian students pursuing skill development programs.
Enacted in June under the name “Access to Higher Education Act, 2023,” or the Students Loan Act, this initiative established an Education Loan Fund aimed at providing interest-free loans to Nigerians pursuing tertiary education and skill development programs.
