When Will NELFUND Loan Repayment Start? FG Explains Full Timeline After NYSC

Beneficiaries of the Nigeria Education Loan Fund are not yet expected to begin repayment of their student loans, according to a clarification issued by President Bola Tinubu’s Special Assistant on Social Media, Olusegun Dada.

Dada urged Nigerians to ignore misleading claims circulating online, explaining that the repayment timeline has not commenced for any applicant under the scheme. He noted that repayment is designed to start only after a two-year moratorium following the completion of the National Youth Service Corps programme.

According to him, the student loan initiative will mark two years in March 2026 from the date the first applications were received, meaning no beneficiary has reached the stage where repayment becomes due. He emphasised that any information suggesting otherwise should be disregarded.

Further clarification was provided by the Managing Director of the fund, Akintunde Sawyerr, who described the repayment structure as seamless, transparent, and fair. He explained that the system is structured in a way that places the primary repayment responsibility on employers of beneficiaries after they secure jobs.

Sawyerr disclosed that a global standing instruction framework has been put in place to recover funds from defaulters who attempt to evade repayment. He also addressed concerns about possible travel restrictions, stating clearly that the loan scheme does not impose any form of travel ban on beneficiaries.

He explained that the two-year grace period after NYSC is intentionally designed to allow graduates enough time to search for employment, settle into their careers, and stabilise their personal lives before repayment begins. In the third year, repayment is expected at a rate of 10 percent of the beneficiary’s income, largely handled through the employer.

According to Sawyerr, the fund does not intend to burden individual beneficiaries with repayment enforcement unless they are self-employed. Instead, the responsibility rests primarily on employers to remit the required deductions.

He stressed that beneficiaries remain free to travel, pursue career opportunities locally or internationally, and live without restrictions while still maintaining an obligation to support the sustainability of the loan scheme once they are gainfully employed.

The Nigeria Education Loan Fund is a key component of the Federal Government’s broader education financing reform aimed at expanding access to higher education and ensuring long-term support for future students through a sustainable repayment model.