Prior to the formal Student Loan Scheme debut on February 21, 2024, the Nigeria Education Loan Fund said that it is completing the details of the repayment plan.
It was established that the 10% direct deduction from the recipients’ salaries remains in place, but applicants have the option to pay 100% up front or in higher percentages.
Waivers, however, will be given to those who are verified to be dead, terminally ill, and unable to support themselves through employment.
“First and foremost, the modality for loan recovery will be done by the employers, which is what we are putting in place at the moment. The loan is N500,000 per year. So, in four years of schooling, that adds up to N2m. And it is interest-free, which means you are not paying more.
“You will pay the baseline 10 per cent. But if you so wish, you can ask your employer to increase your recuperation rate.
“If you don’t want to be encumbered by any debt, you can give a standing order that you want your employer to take away 15 or 20 per cent of your salary every month, or you can choose to clear it up all at once. If you do your business and you can make enough money, you can clear it up,” it was revealed.
When asked if the fees will be adjusted based on the recipients’ compensation package, the insider said, “Everyone will pay a flat rate.”
The eagerly anticipated program will officially debut on February 21 when President Bola Tinubu unveils it at the State House in Abuja, it was revealed on Wednesday, February 7.