The Managing Director/CEO of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, announced that Nigerian students who benefit from NELFUND loans will start repaying their loans two years after completing their National Youth Service Corps (NYSC).
He made this known on Saturday while featuring on a TVC News program.
This repayment is facilitated by their employers, who will deduct 10% of the employee’s salary and remit it to NELFUND monthly.
“Two years after completion of their NYSC, there is a requirement for the loans to be paid back, but the requirement to pay the loan back is on the employer.
“For those who have managed to secure jobs, the employer goes to a database, he or she checks the name and the NIN number of the person who they’re about to employ.
“Then they contact NELFUND and say we’re about to employ this person and we’re going to start making deductions from their salary to the NELFUND.
“That deduction is 10% of that individual’s salary. At no point is the obligation on the individual to pay back themselves.”
If a student is self-employed, they will repay the loan themselves. However, those who are unemployed after NYSC are not obligated to repay the loans.
He further revealed that President (Asíwájú) Bọ́lá Ahmed Tinúbú is considering extending the loan to students in private institutions in the future.
“For now, we only give loans to students of public institutions because the law doesn’t allow us to give loans to private institutions.
“However, I’m very aware that His Excellency President Bola Ahmed Tinubu has indicated that he would like, at some point in the future, to capture all,” he said.
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