Nigerian students who have benefited from the Nigerian Education Loan Fund (NELFUND) will enjoy a two-year grace period after completing their National Youth Service Corps (NYSC) before loan repayment commences, the Fund’s Managing Director/CEO, Mr. Akintunde Sawyerr, has announced.
Speaking on a recent TVC News program, Sawyerr emphasised that the onus of loan repayment rests with employers, not the students themselves. “For those who have managed to secure jobs,” he explained, “the employer is responsible for deducting 10% of the employee’s salary monthly and remitting it directly to NELFUND.”
This system, Sawyerr clarified, ensures a streamlined repayment process. Employers are required to verify the employment of loan recipients through a database maintained by NELFUND, ensuring accountability and transparency. Notably, students who remain unemployed after their NYSC service are not obligated to repay their loans during this period.
This two-year grace period provides a crucial lifeline for recent graduates navigating the challenging Nigerian job market. It allows them ample time to secure stable employment and establish themselves professionally before facing the financial burden of loan repayment. This approach not only alleviates immediate financial pressure but also incentivizes employers to hire graduates who have benefited from the loan scheme, contributing to national development.
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While currently limited to students in public institutions, the NELFUND scheme may soon expand to include those attending private universities. President Bola Tinubu has expressed interest in extending the program’s reach, a move that could significantly increase access to higher education for a larger segment of the Nigerian population.
For many Nigerian students, the prospect of student loan debt can be a daunting obstacle to pursuing higher education. This announcement offers a glimmer of hope, easing the financial burden and allowing graduates to focus on building their careers. It underscores the government’s commitment to supporting young people and fostering a skilled workforce for the future.
The NELFUND’s innovative repayment model demonstrates a forward-thinking approach to student loan programs. By placing the responsibility on employers, the government is not only promoting graduate employability but also encouraging private sector participation in supporting higher education. This initiative has the potential to significantly impact the lives of Nigerian students and contribute to the nation’s economic growth.
