Unemployed beneficiaries of the Nigerian Education Loan Fund student loan have a formal obligation to notify the Fund of their employment status after two years following the completion of the National Youth Service Corps programme.
NELFUND’s repayment guidelines provide that beneficiaries who remain unemployed after the two-year post-NYSC period must notify the Fund through a sworn court affidavit every three months until they secure employment.
The requirement forms part of the conditions governing repayment of the student loan and allows beneficiaries who have not secured jobs to formally maintain communication with the Fund.
1. When does repayment begin?
NELFUND states that repayment begins two years after a beneficiary completes the NYSC programme. The repayment period does not begin immediately after graduation or during NYSC.
Beneficiaries who remain unemployed when the two-year period ends are expected to formally declare their employment status to the Fund.
2. What must unemployed beneficiaries do?
An unemployed beneficiary is required to swear a court affidavit confirming that they are still unable to secure employment.
The affidavit serves as a formal declaration of the beneficiary’s unemployment status after the two-year post-NYSC period.
3. Notify NELFUND of your status
After swearing the affidavit, the beneficiary is expected to notify NELFUND and provide the required documentation.
The notification enables the Fund to maintain an updated record of the beneficiary’s employment status once the loan becomes due.
Beneficiaries should also keep copies of their affidavits and any documents submitted to NELFUND for their records.
4. Repeat the affidavit every three months
The affidavit requirement does not end after the first declaration.
A beneficiary who remains unemployed is expected to notify NELFUND through a sworn court affidavit every three months for as long as they remain unable to secure employment.
5. What happens when you get a job?
Once an unemployed beneficiary secures employment, they are expected to update their employment details with NELFUND.
Under the Fund’s repayment arrangement, 10 per cent of the beneficiary’s salary is deducted at source by the employer and remitted to NELFUND.
6. What if you become self-employed?
Beneficiaries who become self-employed also have repayment obligations.
NELFUND provides that self-employed beneficiaries are required to remit 10 per cent of their monthly profit to the Fund.
They are also expected to notify NELFUND of their change in employment status.
7. Keep your employment status updated
Beneficiaries should ensure that their employment information remains up to date with NELFUND.
This is particularly important for those who move from unemployment to paid employment or self-employment, as their repayment arrangements change once they begin earning an income.
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