The Nigerian Education Loan Fund (NELFUND) has made an important announcement aimed at helping students who have taken out loans from the Federal Government’s student loan program. The organization has pledged to assist these beneficiaries in finding jobs, making it easier for them to repay their loans without any difficulties. This initiative is important, especially in a country where unemployment rates are high, and many graduates struggle to find stable work.
Akintunde Sawyerr, the Managing Director of NELFUND, shared this commitment during a recent session with students from various universities. He addressed their concerns about the loan scheme and explained how NELFUND plans to support them. By connecting beneficiaries with job opportunities, NELFUND aims to create a system that not only helps students finance their education but also enables them to pay back their loans once they enter the workforce.
At a joint public hearing held by the National Assembly regarding the reenactment of the Students’ Loan Bill 2024, several stakeholders voiced their worries about the ability of loan recipients to repay their debts due to the ongoing unemployment crisis in Nigeria. The National Association of Nigerian Students (NANS) expressed these concerns, highlighting the challenges that many students face after graduation.
In response, Sawyerr emphasized the importance of providing job support to loan recipients. He stated, “We are taking proactive steps to empower students to repay their loans, which will reduce the risk of default.” By ensuring that beneficiaries can secure employment, NELFUND is helping to build a more sustainable education loan system that benefits both students and the government.
Sawyerr explained the loan terms clearly. For students who apply for loans now, there is a zero percent interest rate throughout their studies. This means that if a student applies today, they will not have to pay any interest on their loan for the entire duration of their course. “We will honour this promise for those who have applied now,” he assured students.
Importantly, Sawyerr highlighted that loan repayment will not start until two years after the completion of the National Youth Service Corps (NYSC). This provision is designed to give graduates ample time to find jobs before they are expected to begin repaying their loans. “If a person completes their NYSC and two years later is still unemployed, they will not have to make repayments,” he noted.
Furthermore, Sawyerr reassured students that NELFUND does not pursue individuals who lack employment. If a borrower finds themselves without a job after the two-year grace period, NELFUND will work to connect them with job opportunities. “It is in our best interest for you to get a job,” he added, emphasizing the organization’s commitment to supporting students even after they graduate.
Overall, NELFUND’s proactive approach to helping students find employment and manage their loan repayments demonstrates its dedication to improving Nigeria’s education system. By addressing the challenges that students face, NELFUND is not only empowering individuals but also contributing to the nation’s economic growth and stability.
