NELFUND Student Loans: What Happens If Graduates Cannot Find Jobs to Repay?
Nigeria’s student loan scheme is expanding access to higher education, but many beneficiaries are asking what happens if they graduate and cannot find work. NELFUND says repayment does not start immediately after graduation. For beneficiaries who complete NYSC, repayment is expected to begin two years after service and is linked to employment. Employed graduates repay through a 10 per cent deduction from their monthly salary. Graduates who remain unemployed can notify the Fund through the required sworn affidavit and periodic confirmation of their employment status. NELFUND has also dismissed claims that borrowers face life imprisonment for non-repayment. However, unemployment does not cancel the debt, and beneficiaries must keep their details up to date. With more than 1.6 million students reportedly supported with over ₦206 billion, the scheme’s long-term success will depend on whether graduates can access decent jobs, earn sustainable wages and repay without worsening their financial hardship.
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