Student Loan Repayment to Start Two Years After NYSC Completion – NELFUND

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has announced that repayment for student loans provided by the Fund will not begin until two years after the completion of the National Youth Service Corps (NYSC).

Sawyerr made the announcement on Saturday during a feature on TVC News, explaining that the loan repayment will be the responsibility of the employer for those who have secured jobs. He added that employers will deduct 10% of the employee’s salary monthly and remit it to NELFUND.

“Repayment of the loan starts two years after the completion of the NYSC, and the responsibility for repayment falls on the employer for those who have secured employment,” Sawyerr said. “The employer checks the individual’s name and NIN number through a database, then contacts NELFUND to inform them that they are employing the person and will begin salary deductions.”

The NELFUND MD clarified that individuals are not required to pay back the loan directly. Instead, deductions are made by the employer, who remits 10% of the employee’s monthly salary to the Fund.

However, Sawyerr emphasized that unemployed individuals after their NYSC service will not be required to repay the loan, while those who are self-employed will handle repayment on their own.

On the topic of extending NELFUND loans to students in private institutions, Sawyerr noted that the law currently limits the Fund’s loans to students in public institutions. However, he revealed that President Bola Tinubu has shown interest in expanding the scope of the Fund to include private institutions in the future.

“For now, we are only able to provide loans to students in public institutions because the law does not permit loans to students in private institutions. However, President Bola Tinubu has expressed the intention to eventually include private institutions in the future,” he explained.