NELFUND Outlines Repayment Plan for Student Loans in Nigeria

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NELFUND Outlines Repayment Plan for Student Loans in Nigeria

The Nigerian Education Loan Fund (NELFUND) has unveiled its structured plan for students to repay loans, aiming to ease the financial burden on graduates while ensuring the sustainability of the loan program. Akintunde Sawyerr, the Executive Secretary of NELFUND, detailed this plan during an appearance on Channels Television’s Politics Today, offering clarity and reassurance to current and prospective loan recipients.


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Understanding NELFUND’s Repayment Strategy

According to Sawyerr, students who benefit from the education loan are required to begin their repayment journey two years after completing the mandatory one-year National Youth Service Corps (NYSC). This grace period is embedded in the law governing the operations of NELFUND, providing graduates with ample time to secure employment and stabilize financially.

“So, it’s a loan. There’s certainly an expectation to pay back,” Sawyerr emphasized. “The law requires the actual reporting of your status to begin two years after your national youth service corps.”

Reporting and Repayment Obligations

Graduates are expected to report back to NELFUND two years post-NYSC, informing the fund of their employment status and ability to commence repayment. Sawyerr highlighted the importance of this reporting mechanism, which allows NELFUND to determine individual repayment schedules and manage the loan portfolio effectively.



“You’re expected to come back to NELFUND to say look, two years have gone by since I did my national youth service corps, now; I’m in a position to begin to pay or I’m not in a position to pay. As long as we get that reporting at regular intervals, we will be able to determine who needs to pay and when. But the minimum time that we expect you to report back to us is two years after youth corps.”

Provisions for Unemployed Graduates

Addressing concerns about graduates who may not secure employment within the two-year window, Sawyerr confirmed that NELFUND has provisions to accommodate such situations. Graduates who remain unemployed after four years will not be aggressively pursued for repayment. Instead, they are expected to maintain regular communication with NELFUND, updating the fund on their employment status.

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FAQs About NELFUND’s Student Loan Repayment

1. What is the repayment timeline for NELFUND loans?

  • Graduates are expected to start reporting their repayment status two years after completing their NYSC program.

2. What happens if a graduate is unable to find a job within two years post-NYSC?

  • Graduates who are unable to secure employment within two years must report their status to NELFUND. Regular reporting is required, and if they remain unemployed after four years, they will not be pursued aggressively for repayment but must continue to update NELFUND.

3. Is there a moratorium for unemployed graduates?

  • Yes, NELFUND provides a moratorium for graduates who do not secure jobs within the expected timeframe, with an emphasis on regular status updates to the fund.

4. How does NELFUND determine repayment schedules?

  • Repayment schedules are determined based on the graduate’s employment status, reported two years after NYSC, and adjusted according to their financial situation as regularly updated to NELFUND.

Ensuring Sustainable Loan Management

The structured repayment plan by NELFUND is designed to balance the financial needs of graduates with the sustainability of the loan fund. By providing a two-year grace period and requiring regular status updates, NELFUND aims to create a manageable repayment process that considers the varied employment landscapes graduates may face.

For more detailed information on NELFUND’s plans and policies, you can read the full report here.


NELFUND’s thoughtful approach to student loan repayment highlights its commitment to supporting graduates while maintaining the fund’s viability. With clear guidelines and a flexible structure, NELFUND ensures that graduates are not unduly burdened as they transition from academic to professional life, promoting both financial responsibility and economic stability.

By adhering to these principles, NELFUND sets a precedent for effective loan management that could serve as a model for similar programs in Nigeria and beyond.

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