NELFUND Releases Key Information To Loan Applicants

There is vital information for prospective loan applicants of the Nigerian Education Loan Fund (NELFUND) who are of private institutions.

The vital information is coming from NELFUND Managing Director, Akintunde Sawyerr, who was on a TVC progamme today.

Sawyerr said while the law that established NELFUND does not currently allow it to provide loans for Nigerian students in private higher institutions, but that President Bola Tinubu was considering extending it to them in the future.

“For now, we only give loans to students of public institutions because the law doesn’t allow us to give loans to private institutions.

“However, I’m very aware that His Excellency, President Bola Ahmed Tinubu has indicated that he would like, at some point in the future, to capture all,” he said.

He also stated that Nigerian students currently receiving the loan would not begin repayment until two years after completing their National Youth Service Corps (NYSC).

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As for those who have secured jobs, he said the the repayment requirements are on their employers, who are expected to be making 10% monthly deductions from their salaries for onward remittance to the fund.

“Two years after completion of their NYSC, there is a requirement for the loans to be paid back, but the requirement to pay the loan back is on the employer.

“For those who have managed to secure jobs, the employer goes to a database, he or she checks the name and the NIN number of the person who they’re about to employ.

“Then they contact NELFUND and say we’re about to employ this person and we’re going to start making deductions from their salary to the NELFUND.

“That deduction is 10% of that individual’s salary. At no point is the obligation on the individual to pay back themselves,” Sawyer said.

Sawyerr said loan applicants unemployed after NYSC are not under obligation to repay the loans while self-employed persons would repay the loans by themselves.

“For now, we only give loans to students of public institutions because the law doesn’t allow us to give loans to private institutions.

“However, I’m very aware that His Excellency, President Bola Ahmed Tinubu has indicated that he would like, at some point in the future, to capture all,” he said.