The Nigerian government has announced plans to initiate the repayment process for beneficiaries of the Nigeria Education Loan Scheme two years after they complete the National Youth Service Corps (NYSC). Dr. Akintunde Sawyer, the Executive Secretary of NELFund, shared this update during an interview with the News Agency of Nigeria in Abuja.
President Bola Tinubu signed the Access to Higher Education Act, 2023 into law on June 12, 2023. This law enables financially disadvantaged students to access interest-free loans for their tertiary education in Nigerian institutions.
Dr. Sawyer clarified that the two-year grace period after NYSC completion is aimed at giving beneficiaries ample time to secure employment and stabilize before beginning repayment. He emphasized that while the law stipulates repayment commencing two years after NYSC, beneficiaries can repay earlier if feasible.
Employers will have access to a register of loan beneficiaries, and they will be required to deduct 10 percent of the individual’s earnings towards loan repayment through the payroll system.
Dr. Sawyer assured that the repayment modalities are still under development, and individuals without employment or who lose their jobs will not be compelled to repay immediately. He emphasized that the intention is to assist, not burden, aspiring students, and any deliberate attempts to evade repayment will be addressed within the legal framework.
The NELFund secretary urged Nigerians not to politicize the student loan scheme, highlighting its significant benefits for the youth and the nation’s socioeconomic development.
In the 2024 budget, the Federal Government allocated N50 billion for the implementation of the student loan scheme, affirming Tinubu’s commitment to commence the program in January 2024. Tinubu emphasized the importance of this initiative in ensuring the future of Nigerian students and addressing longstanding issues in the education sector.
