#NELFUND Student Loan: How Much Will FG Deduct From Graduates Earning
Nigerian graduates who benefit from the Federal Government’s student loan programme will generally be required to repay 10% of their monthly salaries once their repayment obligations become due.
The Nigerian Education Loan Fund (NELFUND) has explained that the deductions will be made through employers, rather than requiring every employed beneficiary to make manual payments.
The arrangement is part of the repayment framework for the interest-free loans provided to students in eligible public tertiary institutions.
According to the official NELFUND FAQ, employed beneficiaries will have 10% of their salaries deducted at source, while self-employed graduates will remit 10% of their monthly profits.
The policy means the amount repaid each month depends on the beneficiary’s earnings.
How does the 10% salary deduction work?
NELFUND’s loan terms state that beneficiaries must update their employment information when they secure jobs.
The fund requires employers to deduct the prescribed repayment amount from the salaries of beneficiaries whose loans have become due.
The money is then remitted towards the outstanding loan balance.
This arrangement is intended to create a regular repayment system.
However, the obligation is not expected to begin immediately after graduation.
NELFUND generally provides a two-year grace period after completion of NYSC before repayment becomes due.
How much will graduates repay at different salary levels?
Under the stated 10% arrangement, the monthly repayment can be illustrated as follows:
These figures are simple calculations based on 10% of the stated salary amounts.
They are not personalised repayment schedules.
The precise amount should be determined under the applicable loan agreement and statutory rules.
Is the deduction based on gross or net salary?
The 2024 Students Loans Act provides for monthly deductions not exceeding 10% of a beneficiary’s gross income.
The published FAQ uses the simpler description of 10% of salary.
This distinction matters because gross income is calculated before certain deductions, while take-home pay reflects deductions already made.
Beneficiaries should therefore review the terms governing their repayment and seek clarification where necessary.
The examples above use the listed salaries as the calculation base.
Who is responsible for deducting the money?
The fund says employers will deduct repayments at source.
This means a beneficiary’s employer plays an important role in the recovery process.
NELFUND’s managing director, Akintunde Sawyerr, has previously explained that employers are responsible for making and remitting the deductions.
According to a November 2025 report based on a News Agency of Nigeria interview, Sawyerr said the arrangement was designed to make repayment straightforward for beneficiaries.
The repayment framework therefore involves both the borrower and the employer.
What happens when a beneficiary changes jobs?
NELFUND requires beneficiaries to update their employment information.
Its implementation guidelines specify that borrowers changing employment should communicate their new employment details within 30 days of resuming with another employer.
This helps the fund maintain accurate repayment records.
A graduate who changes jobs should therefore not assume that the previous employer’s deductions automatically settle all reporting obligations.
The beneficiary remains responsible for ensuring that NELFUND has accurate information.
What if a graduate is self-employed?