The Nigerian Education Loan Fund (NELFUND) has clarified that repayment of the new student loan scheme will begin two years after beneficiaries complete their National Youth Service Corps (NYSC) programme.
The Managing Director of NELFUND, Akintunde Sawyerr, told journalists in Abuja that the repayment structure was designed to be simple, transparent and fair. He said beneficiaries are given a two-year grace period after NYSC, with repayment starting in the third year.
According to him, employers of graduates who benefited from the loan will be responsible for making the monthly remittances.
“There is a requirement to start paying back the loan, but the obligation is on employers,” he said. “They must deduct 10 per cent of the beneficiary’s income every month and remit it to the Fund.”
He added that the deduction remains monthly even when organisations pay salaries weekly or bi-weekly, to ensure a steady repayment process.
Mr Sawyerr warned that NELFUND can take action against employers who fail to remit the required deductions. For self-employed beneficiaries, he said they are expected to calculate 10 per cent of their earnings and pay directly to the Fund.
He also revealed that NELFUND has put in place a Global Standing Instruction (GSI) system to recover funds from defaulters who have money in their bank accounts but refuse to pay.
“People sign up for the GSI when they take the loan. We must protect public funds so that others coming after can also benefit,” he said.
Addressing concerns about possible travel restrictions, Mr Sawyerr stressed that beneficiaries are free to travel or relocate abroad.
“Taking a loan from us does not make you a slave to the government or NELFUND,” he said. “There is no travel ban. People’s names are not flagged at airports or borders.”
He, however, appealed to beneficiaries abroad to continue repayment once they start earning, noting that the scheme is meant to support education, not to generate profit.
Mr Sawyer described the loan programme as a long-term social investment aimed at giving hope and opportunities to young Nigerians who may not be able to afford higher education.
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