Nigerian Education Loan Fund (NELFUND) has said it will help beneficiaries of the Federal Government students’ loan programme secure employment .

The initiative, according to the agency, aims to ensure that beneficiaries repay their loans without hitches.

Managing Director of Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, stated this while fielding questions from students of tertiary institutions on the operations of the loan scheme.

The Guardian reports that at a joint public hearing organised by the National Assembly for the reenactment of the Students’ Loan Bill 2024, some stakeholders, including the National Association of Nigerian Students (NANS), had expressed concern over the ability of loan beneficiaries to repay the loan, considering the unemployment rate in the country.

Speaking at the weekend, the Fund’s Chief Executive officer said the agency was taking a proactive approach to empower students to repay their loans, thereby reducing the risk of default.

He noted that by connecting beneficiaries with job opportunities, the government was helping to create a more sustainable and self-sufficient education loan system.

He said: “We are saying that for the entirety of the course, so if a person applies today, it’s zero per cent interest. If they come back for their 200 Level, it remains at zero per cent interest. In the future we might change the interest rate, but not for those who have applied now. We will follow through on the promise that takes it through to the end of the course.

“The loan needs to be paid back. It can only be paid back if the person who took the loan is earning an income. So the provision of the law is that nobody is required to start paying this loan back until two years after they have completed their NYSC. What this means is that if a person completes their NYSC and two years later they are due to start paying the loan back, if they don’t have a job, they don’t pay back.

“NELFUND doesn’t come after people who don’t have a job, gainful employment to pay back. After the two-year point, you informed us that you still haven’t got a job. As NELFUND, we will try to connect you to work. We will try to connect you to jobs because it is in our best interest for you to get a job.”