Student Loan: Repayment begins two years after NYSC – FG

The Federal Government has said the repayment for the Nigeria Education Loan Scheme (NELFund) due to take off soon will begin two years after the completion of the National Youth Service Scheme (NYSC) by beneficiaries.

Dr. Akintunde Sawyer, the Executive Secretary of NELFund, made this known in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.

He pointed out that if they are yet to secure employment or if they lose their jobs, they are not obliged to pay.

He said, “The law provides that for students who go into paid employment, repayment will be two years after NYSC, but that does not mean that they cannot pay back before that time.

“However, if they don’t have a job two years after NYSC, we cannot compel them to pay. Where are they going to get the money from? So, we will help them and wait for them to be able to pay.

“There will be a register of those who have taken the loan, and employers will have access to that register and see who has a loan.

“Once they see who has a loan, when they are employing the individual, they will be obliged through the payroll system to refund 10 percent of the earnings of that individual back to the fund.

“We are not trying to turn applicants into criminals; we are trying to help Nigerians who need better education to get it so that they can improve their lives and the country as a whole can see improvement in its social-economic development.”

Persecondnews recalls that President Bola Tinubu has directed the Nigeria Education Loan Fund (NELFUND) to expand the interest-free loans to accommodate Nigerian students interested in skill development programmes.

In a statement, Mr. Ajuri Ngelale, presidential spokesperson, said Tinubu gave the directive after receiving a briefing from the Executive Secretary of NELFUND.

The President said it is important for the student loan scheme to create room for those who may not want to pursue university education, noting that skill acquisition is as important as obtaining undergraduate and graduate academic qualifications.

“This is not an exclusive programme. It is catering to all of our young people. Young Nigerians are gifted in different areas.

“This is not only for those who want to be doctors, lawyers, and accountants.”