NELFUND Gives Graduates Two-Year Grace Before Loan Repayment

Graduates who benefit from the Nigerian Education Loan Fund (NELFUND) will begin repayment two years after completing their National Youth Service Corps (NYSC) — but only if they are employed.

Managing Director Akintunde Sawyerr said NELFUND will help connect graduates to job opportunities before asking them to repay.

“If a student or a loanee has graduated, two years after they complete their NYSC, there is some obligation for them to start paying the loan back if they have a job,” Sawyerr explained on Arise Television.

He stressed that the Fund is not an employer but will create a job portal to connect graduates to available vacancies. “It’s in their interest and the interest of NELFUND to make this connection,” he said.

No ‘Man Know Man’ – Over 724,000 Students Applied

Sawyer dismissed fears that students need connections to benefit. “No student needs any connection to benefit from the programme, apart from the normal verification during application,” he assured.

As of Tuesday morning, 724,000 students had applied for the loan. Out of these, 449,000 from 218 federal and state institutions have had their tuition and upkeep paid.

NELFUND has disbursed ₦47 billion to institutions for tuition and ₦38 billion directly to beneficiaries for upkeep. Sawyerr clarified: “It’s impossible to apply twice.”

Employers Will Deduct 10% For Repayment

To curb defaults, NELFUND will track beneficiaries using their BVN, bank accounts, and employer database.

“The obligation to pay the loan back is on the employer,” Sawyerr noted. Once a beneficiary is hired, the employer must check if they owe NELFUND and deduct 10% of their salary with consent.

Self-employed graduates must remit the same 10% themselves. Institutions that collected fees from students after NELFUND had already paid them are being asked to refund.

Some schools have complied quickly, while others are slower. Sawyerr called them “teething problems” that will be resolved over time.

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