The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has outlined how graduates will repay their student loans — and how the scheme plans to connect beneficiaries to job opportunities after school.
Speaking on Arise Television, Sawyerr explained that graduates will have a two-year grace period after completing their National Youth Service Corps (NYSC) before repayments begin. Once employed, 10% of their salary will be automatically deducted by their employers and sent to NELFUND.
“If a loanee has graduated, two years after NYSC they are expected to start repaying if they have a job. We will help connect them to jobs through a dedicated portal,” Sawyerr said.
For graduates who remain unemployed after NYSC, NELFUND will use its portal to link them with vacancies, ensuring they can begin repayments when they secure work.
Under the repayment model, the obligation to deduct and remit repayments lies with employers, not graduates. Employers will be able to check a NELFUND database to confirm if a new hire has an outstanding loan. For self-employed graduates, the 10% deduction will be paid directly to NELFUND.
As of this week, 724,000 students have applied for the loan, with 449,000 already benefiting from tuition payments and upkeep allowances. These beneficiaries are spread across 218 federal and state-owned tertiary institutions, with NELFUND disbursing ₦47 billion in tuition fees and ₦38 billion in upkeep support.
Sawyerr assured students that no connections or political influence are needed to access the loans, noting that verification processes rely on Bank Verification Numbers (BVN) and other traceable records.
In cases where students have already paid their tuition before NELFUND disbursement, institutions are required to refund the money. While some institutions have been prompt, others have been slower, and minor administrative charges have been noted in refunds.
“These are teething problems,” Sawyerr said. “Over time, they will be resolved as we continue close collaboration with schools and students.”
The NELFUND loan scheme is one of the largest educational support programmes in Nigeria’s history, designed to ease the financial burden on students while promoting accountability in repayment.
EduTimes Africa, a product of Education Times Africa, is a magazine publication that aims to lend its support to close the yawning gap in Africa's educational development.