Categories: News

Repayment Of Student Loan Begins Two Years After NYSC — FG

EKO HOT BLOG reports that the Federal Government has announced that the recovery process from beneficiaries of the Nigeria Education Loan (NELFund) scheme also known as student loan will commence two years after the completion of the National Youth Service Scheme (NYSC).

Dr. Akintunde Sawyer, the Executive Secretary of NELFund, revealed this in an interview with the News Agency of Nigeria (NAN) in Abuja yesterday.

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On June 12, 2023, President Bola Tinubu signed the Access to Higher Education Act, 2023 into law. This legislation enables indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.

Student loan

However, Sawyer said the reason for the two-year grace after NYSC was to afford the beneficiaries enough time to get a job and be stable before the repayment.

“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.

FURTHER READING

“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.”
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