The Federal Government has disclosed that the recovery process for beneficiaries of the Nigeria Education Loan Scheme will commence two years after the completion of the National Youth Service Scheme (NYSC), News About Nigeria reports.
Dr. Akintunde Sawyer, the Executive Secretary of NELFund, made this announcement during an interview with the News Agency of Nigeria (NAN) in Abuja.
The Access to Higher Education Act, 2023, which was signed into law by President Bola Tinubu on June 12, 2023, enables indigent students to access interest-free loans for their educational pursuits in Nigerian tertiary institutions.
According to Sawyer, the two-year grace period after NYSC is designed to allow beneficiaries enough time to secure employment and achieve stability before the commencement of loan repayment.
Sawyer explained that while repayment is mandatory for employed beneficiaries, they are not obligated to repay if they are unemployed or lose their jobs.
“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 percent of the earnings of that individual back to the fund,’’ he said.
Addressing concerns about potential defaulters, Sawyerr said that legal measures would be in place, particularly when defaulters seek loans or facilities from commercial banks.
He urged Nigerians not to politicise the student loan scheme, as its advantage is to support the education and development of the country’s youth.
In the 2024 budget, the Federal Government allocated N50 billion for the implementation of the student loan scheme.
President Tinubu had previously assured that the loan scheme would kick off in January 2024.
