The Nigerian Education Loan Fund has announced that beneficiaries of its student loan scheme will repay their loans through deductions limited to 10 per cent of their gross income after graduation.

NELFUND explained that the repayment arrangement was designed to make the scheme manageable for beneficiaries while ensuring that funds could be recovered and made available to support other students.

The agency said graduates who benefited from the programme would not be required to make excessive payments, as the repayment amount would be tied to their earnings.

It noted that the system was structured to prevent beneficiaries from being placed under undue financial pressure after completing their education.

According to NELFUND, repayments would begin when beneficiaries secure employment or start earning income, with the applicable deduction determined in line with the established repayment framework.

The fund stressed that the student loan initiative was introduced to expand access to tertiary education and ensure that financial difficulties do not prevent qualified Nigerians from pursuing higher education.

NELFUND also urged beneficiaries to comply with the repayment requirements, noting that recovering the loans was essential to maintaining the sustainability of the scheme.

The agency said the recovered funds would be channelled back into the programme to enable more students to benefit from educational financing.

It further reaffirmed its commitment to improving the administration of the student loan scheme and ensuring that the process remained transparent, accessible and responsive to the needs of Nigerian students.

NELFUND maintained that the repayment structure was intended to balance the interests of beneficiaries with the need to preserve the long-term sustainability of the education financing programme.