NELFUND Announces When Student Loan Repayment Will Begin

Akintunde Sawyerr, the Managing Director of the Nigerian Education Loan Fund (NELFUND), announced that Nigerian students currently benefiting from the loan will not start repaying it until two years after completing their National Youth Service Corps (NYSC).

Speaking on TVC News on Saturday, Sawyerr explained that this applies to graduates who have secured employment, and the repayment responsibility falls on their employers.

Read Also: Shehu Sani Reacts To Reps Proposal For 31 New States

Employers will be required to deduct 10% of the employee’s salary each month and remit it to the Fund.

“Two years after completion of their NYSC, there is a requirement for the loans to be paid back, but the requirement to pay the loan back is on the employer.

“For those who have managed to secure jobs, the employer goes to a database, he or she checks the name and the NIN number of the person who they’re about to employ.

“Then they contact NELFUND and say we’re about to employ this person and we’re going to start making deductions from their salary to the NELFUND.

“That deduction is 10% of that individual’s salary. At no point is the obligation on the individual to pay back themselves,” Sawyer said.

He also highlighted that individuals who remain unemployed after completing their NYSC are not required to repay the loans, while those who are self-employed will be responsible for repaying the loans themselves.

Sawyer further noted that although the current law establishing NELFUND does not permit it to offer loans to students in private higher institutions, President Bola Tinubu is considering the possibility of extending this provision to them in the future.

“For now, we only give loans to students of public institutions because the law doesn’t allow us to give loans to private institutions.

“However, I’m very aware that His Excellency, President Bola Ahmed Tinubu has indicated that he would like, at some point in the future, to capture all,” he said.

For More Information And News Update, Join Informant Online WhatsApp Channel With Link Below:

https://whatsapp.com/channel/0029VaihFajBadmT29ufud2Z