The Federal Government has announced that the repayment process for beneficiaries of the Nigeria Education Loan Scheme will begin two years after the completion of the National Youth Service Scheme (NYSC).
Dr. Akintunde Sawyer, the Executive Secretary of NELFund, revealed this during an interview with the News Agency of Nigeria in Abuja on Thursday.
President Bola Tinubu signed the Access to Higher Education Act, 2023 into law on June 12, 2023, to enable indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.
Sawyer explained that the two-year grace period after NYSC is designed to allow beneficiaries enough time to secure employment and become financially stable before commencing repayment.
He emphasized that while the law stipulates a two-year repayment period after NYSC for those in paid employment, beneficiaries are not prohibited from repaying earlier if they are able to do so.
Employers will have access to a register of loan beneficiaries and will be required to deduct 10% of the individual’s earnings through the payroll system and remit it to the fund.
Sawyer assured that measures would be put in place to track defaulters, particularly when they apply for loans or facilities from commercial banks.
He urged Nigerians to support the programme, highlighting its significant benefits for the youth and the country’s socio-economic development.
The FG has allocated N50 billion in the 2024 budget for the implementation of the student loan scheme, which is set to commence in January 2024. Tinubu assured that the new programme would address long-standing issues in the education sector, including the eradication of strikes.
