MUST READ!!! FG Reveals When Graduates Will Start NELFUND Student Loan Repayment
Nigerian students who obtain financial assistance through the Federal Government’s education loan programme are not required to begin repayment immediately after receiving the money.
The Nigerian Education Loan Fund (NELFUND) provides interest-free loans to eligible students in public tertiary institutions to cover approved institutional charges and upkeep expenses.
However, beneficiaries are expected to repay the money after completing their education and reaching the applicable repayment stage.
According to NELFUND’s official frequently asked questions, repayment becomes due two years after the completion of the National Youth Service Corps (NYSC) programme.
The arrangement is intended to provide graduates with time before they begin meeting their loan obligations.
The official FAQ states that repayment is due two years after completing NYSC.
This means beneficiaries are not generally required to begin making compulsory repayments while still studying.
The repayment arrangement also provides a period after national service before the loan becomes due.
For example, a graduate who completes NYSC in December 2026 would ordinarily reach the stated repayment point in December 2028.
This is an illustration based on the published rule, not a personalised repayment schedule.
Beneficiaries should confirm the applicable dates through their loan agreements and NELFUND accounts.
NELFUND’s published loan terms specifically address beneficiaries who participate in NYSC.
However, the public FAQ does not provide a complete explanation of the repayment timetable for graduates who are exempted from national service or otherwise do not participate.
Such beneficiaries should seek clarification directly from the fund.
They should not automatically assume that the same starting date applies to every circumstance.
According to the official FAQ, employed beneficiaries are required to repay 10% of their monthly salary.
The amount is deducted at source by the employer and remitted towards the outstanding loan.
For example, a beneficiary earning ₦200,000 monthly would have ₦20,000 deducted under the stated 10% arrangement.
A graduate earning ₦300,000 monthly would repay ₦30,000.
These figures illustrate the percentage rule and do not account for any individual adjustments or the remaining loan balance.
The deductions should cease when the applicable loan obligation has been fully settled.
The repayment arrangement also covers beneficiaries who become self-employed.
According to the FAQ, self-employed graduates are required to remit 10% of their monthly profits.
This differs from the arrangement for salary earners, whose deductions are made through their employers.
The published terms require self-employed beneficiaries to provide business information to NELFUND within 60 days of becoming self-employed.
Such information includes the business name, address and relevant banking details.
Beneficiaries should review the agreement for the full reporting requirements.