• News - North Central - FCT
  • Updated: March 07, 2024

Students loan recovery to begin two years after NYSC — FG

Students loan recovery to begin two years after NYSC — FG

The Federal Government has disclosed that the repayment process for the Nigeria Education Loan Scheme (NELFund) will begin two years following the completion of the National Youth Service Scheme (NYSC) by beneficiaries.

This was made known by Dr. Akintunde Sawyer, the Executive Secretary of NELFund, in an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.

Sawyer mentioned that the two-year grace period following the NYSC is designed to give participants sufficient time to find employment and achieve financial stability before starting their repayments.  

“The law provides that for students who go into paid- employment, repayment will be two years after NYSC, but, that does not mean that they cannot pay back before that time. 

“However, if they don’t have a job two years after NYSC, we cannot compel them to pay. Where are they going to get the money from? So, we will help them and wait for them to be able to pay. 

“There will be a register of those who have taken the loan and employers will have access to that register and see who has a loan. 

“Once they see who has a loan, when they are employing the individual, they will be obliged through the payroll system to refund 10 per cent of the earnings of that individual back to the fund,’’ he said. 

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