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Education

NELFUND Clarifies Student Loan Terms: No Travel or Job Restrictions for Beneficiaries

The Nigerian Education Loan Fund (NELFUND) has assured students that beneficiaries of its student loan scheme are not restricted from traveling abroad or seeking job opportunities after graduation.

Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyerr, addressed these concerns during a sensitization program at Edo University, Iyamho. He emphasized that the law establishing NELFUND does not impose any travel restrictions on students who receive loans.

Sawyerr reassured students that taking a loan does not mean they must remain in Nigeria. He clarified that the loan agreement does not prevent them from working abroad.

“The law that set up the Nigerian Education Loan Fund does not limit your ability to go and look for work wherever you want. You are not tied. It doesn’t say you cannot leave Nigeria because you have a loan with us. You can go wherever you want to go in the world,” he stated.

However, he advised students to take responsibility for repaying their loans, even if they secure jobs in other countries.

“If you have a loan in Nigeria and you want to get a job somewhere else, the right and proper thing to do is to pay back the loan to your country,” Sawyerr added.

Encouraging students to embrace the scheme, he highlighted its benefits. He explained that NELFUND offers a unique opportunity for students to finance their education without the burden of high interest rates.

“This is the only loan you can take to acquire something that can never be taken away from you,” he said.

The repayment structure is interest-free, even if repayments take up to ten years. This makes it more accessible and manageable for students.

Providing an update on the disbursement process, Sawyerr revealed that NELFUND is prepared to distribute N135 billion once all applications are processed.

“We have received about 520,000 registrations and about 419,000 applications. So far, we have processed and paid 261,000 students for both upkeep and institutional fees. If we were to pay everyone that has applied, the total disbursement would be around N135 billion. We have the funds and are ready to disburse once processing is complete,” he stated.

University officials have welcomed the initiative. The Acting Vice Chancellor of Edo University, Professor Dawood Egbefo, praised the program, noting that 51 students from the institution had already received N61.4 million in funding for the 2023/2024 academic session.

However, during a sensitization visit to Ambrose Alli University, Ekpoma, NELFUND officials expressed concern over the low number of applications. Only 102 students had applied, with total disbursements amounting to less than N20 million.

To improve participation, Lami Suwaid, Director of Loan Allocation and Distribution at NELFUND, encouraged the university to take advantage of the new registration cycle.

NELFUND continues to promote student loan accessibility and urges eligible students to apply. While beneficiaries are free to seek career opportunities globally, they are also encouraged to fulfill their repayment obligations. This will ensure the long-term success and sustainability of the program.

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