NELFUND Student Loan: Unemployed Beneficiaries Must Declare Status Post-NYSC

Recipients of the Nigerian Education Loan Fund (NELFUND) student loan who find themselves jobless two years following the completion of their National Youth Service Corps (NYSC) program are now mandated to officially inform the Fund about their employment situation. This directive, detailed in NELFUND's published guidelines seen by PUNCH Online on Friday, stipulates that beneficiaries still without a job after this two-year post-NYSC window must provide quarterly updates to the Fund via a sworn court affidavit.

This requirement forms a crucial part of the loan repayment terms, allowing unemployed beneficiaries to formally declare their status instead of disengaging from communication with NELFUND. Here’s a detailed breakdown of what beneficiaries in this category need to understand:

**1. Observe the Two-Year Post-NYSC Grace Period**

NELFUND clearly states that “The loan is due for repayment 2 years after the completion of NYSC.” This means that the obligation to repay does not commence immediately after graduation or during the NYSC service year. The two-year countdown begins only after the beneficiary has concluded their service program or received an official exemption. Should a beneficiary remain unemployed after this period, they are then required to initiate formal notification procedures regarding their status to the Fund.

**2. Obtain a Sworn Court Affidavit**

An unemployed beneficiary is compelled to obtain an affidavit from a court, affirming their continued inability to secure employment. NELFUND's Frequently Asked Questions (FAQ) explicitly mentions, “The beneficiary should notify NELFUND by sworn court affidavit every 3 (three) months after two years post NYSC if still unable to gain employment.” This affidavit serves as an official declaration of the beneficiary’s jobless status once the two-year post-NYSC period elapses.

**3. Inform NELFUND of Your Situation**

Following the swearing of the affidavit, the beneficiary is expected to promptly notify NELFUND and submit all necessary documentation. This notification ensures that the Fund maintains an accurate record of the beneficiary’s employment status as the loan repayment date approaches. Beneficiaries are advised to keep copies of their affidavits and any other submitted documents for their personal records.

**4. Quarterly Affidavit Submission**

The affidavit requirement is not a one-time event. An unemployed beneficiary must continue to inform NELFUND through a sworn court affidavit every three months for the entire duration of their unemployment. This implies that if a beneficiary remains jobless three months after their initial declaration, they must undertake another sworn declaration, repeating the process as needed.

**5. What Happens Upon Gaining Employment?**

When an unemployed beneficiary secures a job, the situation changes. They are expected to update their employment details with NELFUND so that the Fund can implement the appropriate repayment plan. NELFUND specifies, “Ten percent (10%) of the beneficiary’s salary will be deducted at source by the employer.” Consequently, 10% of the beneficiary’s monthly salary will be withheld by their employer and remitted directly to the Fund.

**6. Obligations for Self-Employed Beneficiaries**

Beneficiaries who transition into self-employment also have repayment responsibilities. NELFUND mandates, “Self-employed beneficiaries are required to remit 10% of their monthly profit to the Fund.” These individuals are expected to inform the Fund about their change in employment status and adhere to the stipulated repayment terms.

**7. Maintain Updated Employment Information**

It is crucial for beneficiaries to ensure their employment details with NELFUND are always current. This is particularly vital for those moving from unemployment to paid employment or self-employment, as their repayment arrangements will be adjusted once they start generating income.