NELFUND Outlines Student Loan Repayment Plan After Graduation

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has announced that graduates who benefited from the student loan scheme will be required to begin repayment two years after completing their National Youth Service Corps (NYSC).

Speaking in an interview, Sawyerr explained that repayment will only commence for beneficiaries who secure employment within that period. For those still without jobs, NELFUND plans to assist by linking them to employment opportunities through a dedicated online portal. Once employed, 10% of their monthly earnings will be deducted by their employers and remitted to NELFUND as loan repayment.

“If a student has graduated, two years after completing NYSC, they are expected to start paying the loan back if they have a job. We will assist in connecting them with employment opportunities through our portal. This benefits both the graduates and NELFUND,” he said.

No ‘Man-Know-Man’ Requirement

Sawyerr emphasized that the scheme is transparent, stating that no applicant needs personal connections to qualify. Only the standard verification process is required before approval.

Current Loan Statistics

As of the latest update, 724,000 students have applied for the loan, with 449,000 already receiving benefits. Beneficiaries include students whose tuition fees—and in some cases upkeep allowances—have been paid directly to their institutions. These beneficiaries are spread across 218 federal and state-owned tertiary institutions.

NELFUND has so far paid ₦47 billion to these institutions on behalf of the students, while an additional ₦38 billion has been disbursed as upkeep allowances.

Measures to Prevent Loan Defaults

To minimize defaults, NELFUND has put systems in place to ensure that every beneficiary can be identified and traced using tools like the Bank Verification Number (BVN) and other bank details.

Under the repayment arrangement, the obligation falls on employers. Before hiring, employers will check a NELFUND database to confirm whether a potential employee has an outstanding loan. If so, they are required— with the employee’s consent—to deduct 10% of the employee’s wages or salary (weekly or monthly) and remit it to NELFUND.

For self-employed graduates, the repayment responsibility rests directly on them, with the same 10% contribution rate applied.

Refunds for Duplicate Payments

Sawyerr also addressed cases where students may have paid fees themselves despite NELFUND already making payments to their institutions. Such funds, he said, must be refunded to the students, although some institutions have been slower than others in processing these repayments.

While noting that some refunds have been slightly less than the original payments due to administrative charges, he described these as minor operational issues that will be resolved over time.

“We are working closely with both institutions and students to address these teething problems. Over time, these issues will be smoothed out,” he assured.

The NELFUND student loan scheme is designed to make higher education more accessible to Nigerians, ensuring that graduates have a fair and supportive path to repayment once they are financially capable.