Repayment of Student Loan Begins Two Years After NYSC – FG
However, he noted that individuals who do not secure employment within the specified period will not be compelled to repay the loan immediately, as it would be unreasonable to demand repayment from unemployed individuals.
AKACHI NOEL 
The Federal Government has announced that the repayment process for beneficiaries of the Nigeria Education Loan Scheme will commence two years after the completion of the National Youth Service Corps (NYSC) program.
According to the Executive Secretary of NELFund, Dr. Akintunde Sawyer, this decision aims to allow beneficiaries enough time to secure employment and stabilize their financial situations before beginning repayment.
The Access to Higher Education Act, 2023, signed into law by President Bola Tinubu on June 12, 2023, enables indigent students to access interest-free loans for their educational pursuits in any Nigerian tertiary institution.
Dr. Sawyer emphasized that while repayment officially starts two years after NYSC, beneficiaries are not precluded from repaying earlier if they secure employment before that time.
However, he noted that individuals who do not secure employment within the specified period will not be compelled to repay the loan immediately, as it would be unreasonable to demand repayment from unemployed individuals.
Employers will have access to a register of loan beneficiaries, enabling them to make deductions from employees' salaries to refund a percentage back to the fund, as mandated by the law.
The modalities for repayment and employer obligations are still being finalized, but it is expected that deductions will be made through the payroll system for as long as the beneficiary remains employed.
Dr. Sawyer urged Nigerians not to politicize the student loan scheme, highlighting its significant benefits for the country's youth and socioeconomic development.
The Federal Government has allocated N50 billion in the 2024 budget for the implementation of the student loan scheme, which is scheduled to kick off in January.
President Tinubu assured that the loan scheme would commence in January 2024, aiming to address longstanding issues in the education sector and ensure a more sustainable model of funding tertiary education.
