News

March 7, 2024

Students loan recovery begins 2 years after NYSC

NELFUND

The Federal Government says the recovery process from beneficiaries of the Nigeria Education Loan Scheme (NELFund) will commence two years after the National Youth Service Scheme (NYSC).

Executive Secretary NELFund, Dr Akintunde Sawyer, made this known during an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja.

Sawyer said that 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.

“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.

“Once they see who has a loan, when they are employing the individual, they will be obliged through the payroll system to refund 10 per cent of the earnings of that individual back to the fund,’’ he said.

Sawyer said that the modalities of how the money would be rooted were still being worked out, but the employer would be obliged to make those deductions for as long as that person is at work.

“If they are yet to secure employment or if they lose their jobs, they are not obliged to pay.

“We are not trying to turn applicants into criminals; we are trying to help Nigerians who need better education to get it so that they can improve their lives and the country as a whole can see improvement in its social-economic development,’’ he said.

For those who might want to deliberately circumvent the process of repayment, Sawyerr said there must be a way the law will catch up with them.

He said this could be achieved whenever the defaulters need to access loans or any facilities from commercial banks. (NAN)