NELFUND Loan: Repayment Begins 2 Years After NYSC

The Managing Director and CEO of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, has reassured beneficiaries that they will not be required to start repaying their student loans until two years after completing their National Youth Service Corps (NYSC).

Sawyerr made this clarification while speaking on a TVC News program on Saturday, stating that the repayment process applies only to those who have secured employment, with deductions handled by their employers. He explained that once a beneficiary secures a job, their employer is responsible for deducting 10% of their salary and remitting it to NELFUND.

“Two years after NYSC, the obligation to repay falls on the employer,” Sawyerr said. “Employers will check the database using the employee’s National Identification Number (NIN) and notify NELFUND before commencing salary deductions.”

However, for those who are self-employed, Sawyerr noted that they would have to repay the loan independently. He also clarified that unemployed beneficiaries would not be required to make any repayments until they secure a job.

Currently, the law establishing NELFUND only permits funding for students in public higher institutions. However, Sawyerr revealed that President Bola Tinubu is considering expanding the program to include students in private universities and colleges in the future.

“For now, we only provide loans for students in public institutions, but President Tinubu has expressed interest in extending the initiative to cover all Nigerian students,” he stated.

As of February 3, 2025, NELFUND has disbursed a total of N20 billion for institutional fees, benefiting 192,906 students in federal and state-owned institutions. Additionally, 169,114 students have received monthly stipends totaling N12.8 billion, with each student receiving ₦20,000.

The Nigerian Education Loan Fund was established through legislation signed into law on April 3, 2024, to provide financial support for tuition, fees, and living expenses to students in approved tertiary and vocational institutions.