The Nigeria Education Loan Scheme (NELFund) beneficiaries are expected to begin the repayment process two years after the completion of the National Youth Service Scheme (NYSC), according to the Federal Government. Dr. Akintunde Sawyer, Executive Secretary of NELFund, disclosed this during an interview with the News Agency of Nigeria (NAN) in Abuja.
To provide sufficient time for beneficiaries to secure employment and become financially stable before repayment, the law stipulates that repayment from students in paid employment will commence two years after NYSC. Nonetheless, the beneficiaries are free to make payments before the two-year period elapses. However, if the beneficiaries are unemployed after the two-year grace period, repayment cannot be enforced as they are unable to source the funds.
Dr. Sawyer indicated that there would be a register of beneficiaries who have received the loan, and employers would have access to it to determine who has an outstanding loan. Employers would be obliged to refund 10% of the individual's earnings with a loan through the payroll system. The repayment modalities are still being worked out, but the deductions would be made by the employer for as long as the individual remains employed. In the event that beneficiaries are out of work or lose their jobs, they are not obligated to make payments.
The primary aim of Nigeria Education Loan Scheme is to assist Nigerians who require better education to obtain it. The organization is not interested in turning beneficiaries into criminals but rather aims to assist them in improving their lives and contribute to the socio-economic growth of the country.
Dr. Sawyer warned that beneficiaries who deliberately evade repayment will be caught by the law whenever they try to access loans or any facilities from commercial banks.