The Executive Secretary of the Nigeria Education Loan Fund, Akintunde Sawyerr, has explained that the potential beneficiaries of the Federal Government’s student loan scheme would have to repay the loan two years after concluding the National Youth Service Corps (NYSC) programme.
Sawyerr, who was a guest on Channels Television’s Politics Today on Monday, said it is important for the loan to be paid back in time because other young people are on the queue to benefit from the scheme.
He acknowledged the challenge of unemployment in the country which could be a challenge to repaying the loan but said that the government is trying to address that through some other initiatives.
“There is 35 per cent youth unemployment in the country at the moment, there are other initiatives of the government that are seeking to address this. 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.
“This doesn’t meant that people can’t pay back early, there are some who get very lucky and they end with oil companies and banks and they are able to do that or they have an uncle somewhere who says I am going to liquidate your loan for you,” Sawyerr said.
The education loan fund secretary said people need the loan because they need better education to get good jobs that would enable them repay the loan at the end of their youth service.
Sawyerr said there won’t be need for any collateral, adding that the loan would vary according to course of study.
He some of the challenges with the loan would be addressed as the scheme progresses, adding that all is set for President Bola Tinubu to launch the scheme.
Meanwhile, the President in Niger State on Monday, said the much-awaited Student Loan Scheme and other programmes of his administration which ought to have commenced are being fined-tuned.
“The Student Loan Programme will commence. There will be employment benefits for our graduates. The social security programme for the elderly and vulnerable will commence. We are fine-tuning all of that.”
The President had last June signed the Access to Higher Education Bill into law to allow indigent students access interest-free loans to run programmes in any Nigerian tertiary institutions.
The loan is open to all Nigerian students in the nation’s higher institutions.
