FG Unveils Timeline and Repayment Procedure for Student Loans

In a recent update, the Federal Government has revealed that the repayment process for beneficiaries of the Nigeria Education Loan (NELFund), will kick off two years after the completion of the National Youth Service Scheme (NYSC).

Dr. Akintunde Sawyer, the Executive Secretary of NELFund, shared this information during an interview with the News Agency of Nigeria (NAN) in Abuja. The announcement follows the enactment of the Access to Higher Education Act, 2023, on June 12, 2023, by President Bola Tinubu. This legislation aims to provide interest-free loans to financially challenged students pursuing education in Nigerian tertiary institutions.

The decision to initiate repayment after a two-year grace period post-NYSC is designed to give beneficiaries ample time to secure employment and achieve financial stability before commencing repayments. Dr. Sawyer emphasized that while the law specifies a two-year grace period for those in paid employment, it doesn’t restrict individuals from repaying earlier.

He stated, “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.” Additionally, a register of loan beneficiaries will be maintained, granting employers access to verify individuals with outstanding loans.

This initiative aims to support students in their educational pursuits by providing a reasonable timeframe for them to establish themselves in the workforce before shouldering the responsibility of loan repayment.