The Federal Government has disclosed that the recovery process from 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. The announcement comes following the signing of the Access to Higher Education Act, 2023 into law by President Bola Tinubu on June 12, 2023, aimed at providing interest-free loans to indigent students for tertiary education.
Sawyer explained that the two-year grace period after NYSC allows beneficiaries sufficient time to secure employment and stabilize before repayment. However, repayment can be made earlier if beneficiaries secure employment before the stipulated time.
He further outlined that employers will have access to a register of loan beneficiaries, obliging them to deduct 10% of the individual’s earnings through the payroll system for repayment.
Sawyer emphasized that the scheme aims to assist Nigerians in accessing quality education to improve their lives and contribute to the country’s socioeconomic development.
While acknowledging potential challenges and attempts to circumvent repayment, Sawyer assured that mechanisms would be in place to ensure compliance, including consequences for defaulters when accessing loans or facilities from commercial banks.
He urged Nigerians not to politicize the student loan scheme, emphasizing its importance in supporting the youth and improving the education sector. The Federal Government allocated N50 billion in the 2024 budget for the implementation of the scheme, reaffirming its commitment to its commencement in January 2024, as announced by President Tinubu.
