The Nigerian Education Loan Fund (NELFUND) has reassured students that there will be no harassment or pressure to repay the Federal Government’s education loan if they are not yet employed. The loan, which is interest-free, allows students to begin repayment only two years after completing their National Youth Service Corps (NYSC), and only once they have secured a job.
At a sensitisation meeting with students of Ebonyi State University (EBSU) in Abakaliki, NELFUND’s Managing Director, Akintunde Sawyerr, clarified that the loan’s structure is designed to support students’ education without burdening them prematurely. He stressed that the repayment process would only start when graduates have gained employment, and provisions exist for those who remain unemployed beyond two years.
“You are not expected to repay the loan immediately after graduation. The law allows two years after completing NYSC before repayment starts, and only if you are working. If you are not employed, you won’t be chased for payment,” Sawyerr stated.
The event, organised alongside the leadership of the National Association of Nigerian Students (NANS), was aimed at providing students with detailed information about the loan scheme and encouraging them to take advantage of the opportunity. NANS President, Lucky Emonefe, emphasised that the loan is accessible to all students, dismissing concerns that it might be reserved for a select few.
In addition to covering tuition fees, the loan provides students with monthly stipends to support their living expenses. So far, 260 federal and state tertiary institutions have been enrolled on the platform, with over 360,000 student registrations and nearly 268,000 loan applications submitted. The first phase of the programme, launched in May 2024, aims to benefit at least 1.2 million students, with 45,440 already receiving funds.
Chioma Nweze, Senior Special Assistant to the President on Community Engagement (South East), encouraged students from the South East to embrace the scheme, noting a lag in applications from the region. “This loan is available for all Nigerian students, regardless of their background, and we should not miss out on such a valuable opportunity,” she said.
EBSU Vice-Chancellor, Prof. Chigozie Ogbu, acknowledged some challenges encountered in the loan application process and called on NELFUND to address these issues for smoother access. He assured that the institution would continue to guide students through the process to ensure they benefit fully from the scheme.
