Why Student Loan Should Be Repaid Two Years After NYSC – Official

Recipients of the Federal Government’s student loan program will be required to repay the loan two years after the conclusion of the National Youth Service Corps (NYSC) program, according to the  Executive Secretary of the Nigeria Education Loan Fund, Akintunde Sawyerr.

Sawyerr, who appeared on Politics Today on Channels Television on Monday, stated that since there are other young people waiting in line to benefit from the program, it is imperative that the loan be repaid on time.

Naija News reports that although he agreed that the nation’s high unemployment rate would make it difficult to repay the loan, he said that the government is working to address the issue through other programs.

According to the secretary of the education loan fund, people require loans in order to improve their education and obtain well-paying employment that will allow them to pay back the loans after their youth service is up.

Sawyerr stated that no collateral would be required and that the loan amount would depend on the student’s degree of study.

He said, “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.”

He added that everything is ready for President Bola Tinubu to introduce the program and that some of the loan’s difficulties will be resolved as it proceeds.

Naija News recalls that the President, while in Niger State, announced on Monday that his administration is fine-tuning other programs, including the eagerly anticipated Student Loan Scheme, which should have started earlier.