Important Update for All Corpers: How Your Student Loan Repayment Will Work After NYSC
Hello, our great Nigerian corpers! If you have collected or you are planning to collect the government student loan, you need to listen well. NELFUND has just dropped new guidelines and we have broken it down for you in simple, sweet language.
This is specifically about how and when you will start to pay back the money. No long stories, let’s go straight to the matter.
When Will I Start Paying Back The Loan?
This is the biggest question on everyone’s mind. The government has made it very simple and they have given you enough time to settle down after your service year.
Your ‘No-Stress’ Grace Period
You will NOT start paying immediately you finish NYSC (Does Nysc Pay Double Allowance At The End Of Service: Everything You Need to Know). The rule says:
- You must have completed your National Youth Service (NYSC).
- Or, if you were given an exemption certificate, (Differences Between NYSC Discharge, Exemption, Exclusion Certificates) that is also okay.
- Then, you wait for two full years after that.
So, if you pass out of camp (NYSC News: Corps Member Passes Away in Bike Accident After Leaving Camp) today, you have two whole years to find a good job, start a business, and settle down before any kobo is removed from your account. This is good news!
How Much Will I Be Paying Every Month?
The amount you pay is very fair. It is not a fixed amount that will stress you.
- You will pay 10% (Ten Percent) of your salary every month.
- This means if you have a job and your salary is N50,000, you will pay N5,000 that month.
- If your salary is N100,000, you will pay N10,000.
If your salary is small, you pay small. If it is big, you pay big. It is that simple. They will not come and take all your money.
How Will The Government Collect The Money?
There are two main ways, depending on how you are working.
1. If You Have a Office Job (PAYE)
If you are working for a company or government office, your repayment will be very easy.
- Your employer will help you to remove the 10% from your salary every month.
- They will send it directly to NELFUND on your behalf.
- You don’t need to do anything yourself. It happens automatically.
2. If You Are Your Own Boss (Self-Employment)
If you are doing your own business, like fashion design, barbing salon, farming, or you are a contractor, you fall into this category.
- You will be responsible for calculating your own income and sending the 10% to NELFUND by yourself every month.
- It is your duty to be honest and remember to pay on time.
Final Advice for All Corps Members
This student loan is a great opportunity to help you school (FUTA 500L Student’s Viral Okada Ride for School Fees Sparks NYSC Corps Members’ Inspiration) without too much stress. The repayment plan is also designed not to be a heavy burden on you after service.
So, use your service year well. Learn new skills during your primary assignment and SAED programme. This will help you get a good job or start a strong business after service, so that when it is time to pay back, it will not be difficult for you.
Stay informed! Always check the official NELFUND website at www.nelf.gov.ng for any new updates.
We wish you the very best in your service to the nation!