The Nigeria Education Loan Fund’s Executive Secretary, Akintunde Sawyerr has stated that beneficiaries of the Federal Government’s student loan scheme will have to repay the loan within two years of completing their National Youth Service Corps (NYSC) program.
Sawyerr, speaking on Channels Television’s Politics Today on Monday, stressed the need for timely repayment as other young people are waiting in line to benefit from the program.
He said:
“The truth about this is that we are giving loans to successful applicants; you need those loans to be paid back, why? One of the primary reasons we need those loans to be paid back is that there are people in the queue, there are other people wanting to get into the scheme and get loans. The term of repayment is two years after youth service, if and I reiterate if they have a job.”
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The challenge of unemployment may make it difficult to repay the loan, however, he explained, the government is working on other initiatives to address the issue.
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He pointed out that the loan is necessary for better education and job opportunities that will enable repayment at the end of youth service.
The official clarified and that there is no need for collateral, adding that the loan amount will vary depending on the course of study.
According to him, some of the loan’s challenges will be addressed as the scheme progresses, and that President Bola Tinubu is set to launch the program.
Tinubu recently stated that the Student Loan Scheme and other programs under his administration, which have yet to begin, are being fine-tuned.
Last June, the President signed the Access to Higher Education Bill into law, allowing indigent students to access interest-free loans to study in Nigerian tertiary institutions. The loan is open to all Nigerian students in higher institutions.
