Students have begun to voice concerns over the repayment structure of the interest-free loans, citing economic uncertainty and limited job opportunities and decrying technical challenges in the disbursement process.

While many beneficiaries have praised the initiative for easing financial burdens and enabling access to higher education, others are calling on the federal government to consider waivers or flexible repayment terms, especially for graduates unable to secure employment.

These concerns are against the backdrop of the disclosure by the Nigerian Education Loan Fund (NELFUND) that a total of N92, 871,242,785.00 had been to students across the country as of September 13, 2025.

The NELFUND’s Daily Status Report issued by the Office of the Managing Director/Chief Executive Officer documented key figures reflecting the scale of registration, application and disbursement since the official launch of the NELFUND Student Loan Portal on May 24, 2024.

The report said 809, 983 students had so far registered on the portal out of which 795, 332 students had completed loan applications, representing a 102 percent application success rate among all registered users.

From the pool of successful applicants, 482,342 students were said to have received disbursements under the scheme.

The NELFUND, which was established on April 3, 2024 following President Bola Ahmed Tinubu’s assent to the amended Students Loan (Access to Higher Education) Act, 2024, was launched on July 17, 2024.

It was designed to provide interest-free loans for higher education, aiming to eliminate financial barriers and improve Nigeria’s Human Development Index (HDI).

The Managing Director of the NELFUND, Akintunde Sawyerr, had, last month while featuring on Arise Television, said graduates would have a two-year grace period after completing their national youth service before repayments begin.

According to him, once employed, 10 percent of their salary will be automatically deducted by their employers and sent to NELFUND.

For self-employed graduates, the 10 percent deduction will be paid directly to the NELFUND.

He said for graduates who remain unemployed after the national service, the NELFUND would use its portal to link them with vacancies, ensuring they could begin repayments when they secure work.

“If a loanee has graduated, two years after NYSC, they are expected to start repaying if they have a job. We will help connect them to jobs through a dedicated portal,” Sawyerr had said.

Under the repayment model, the obligation to deduct and remit repayments lies with employers who are expected to check a NELFUND database to confirm if a new employee has an outstanding loan.

As students continue to benefit from the scheme, their gratitude is mixed with caution. For them, the real test of the NELFUND is not just access to education, but whether the promise of repayment without undue hardship will be a reality.

‘Repayment worries us’

Students of various institutions across the country, who spoke to Daily Trust, the most pressing concern for many remains the viability of repaying the loans after graduation.

In Kano State, four institutions were approved to benefit from the NELFUND student loan—two federal institutions, Bayero University Kano (BUK) and Yusuf Maitama Sule University of Education Kano, and two state-owned universities, Aliko Dangote University of Science and Technology Wudil and Northwest University Kano.

Students in these institutions shared how the loan had helped them settle tuition fees and receive monthly stipends for upkeep. Rabi’u Muhammad of BUK said the fund was a lifeline after tuition fees were introduced.

“When registration fees were hiked two years ago, I felt like giving up because my parents could not afford it, and I didn’t want to quit for that reason. Then came the NELFUND. It is a lifesaver for me honestly,” he said.

Halima Musa, another student, said the monthly upkeep allowance of N20,000 had been crucial to her daily routine.

However, Sama’ila Garba raised concerns about unexplained deductions.

“I saw an additional N10,000 on the registration amount fees. I thought it was only me, but when I consulted further, I realized that almost everyone has witnessed it. My registration fee is N150,000, but N160,000 was remitted to my school. It means I was indebted with an additional N10,000 that could not be explained. But aside from this issue, the program generally is a lifesaver,” he said.

On repayment, Garba added, “Many of us are just hoping the government will one day waive the debt.”

Shareef Noma, a 400-level student at the Gombe State University and a beneficiary of the loan, said: “I’m really worried about paying back my student loans after graduation. Though I’ve heard that no interest is attached to it, I’m not sure I’ll be able to find a job that pays enough to cover my expenses. The present situation in this country is that there are no job opportunities, and poor families hardly get employed no matter how qualified they are—unless you have what we call a ‘godfather’. Sometimes, you even have to pay for the job. Assuming you get a job with a minimum wage of N30,000 and you’re required to pay 10 percent of that as loan repayment, how much is left as take-home?”

Muhammad Ali Adamu, a final year Computer Science student of the same institution, said while the loan is a welcome development, repayment remains a concern.

“The so-called N70,000 minimum wage is not enough to deduct 10 percent for repayment, and it’s not even implemented across all states. I think the government should focus on creating more jobs in the public sector or provide incentives for private companies to hire fresh graduates. If the government could support startups, that would be amazing. We could create our own jobs and contribute to the economy.”

Abba Suleiman, a 300-level student at the University of Abuja, stated: “My fear is that we’ve submitted all our personal details including BVN and NIN. So even if one doesn’t secure a job, the government can still deduct from your bank account—whether it’s your money or someone else’s deposited into your account. That’s the panic about the whole loan. Even though I’ve been trying to network and build connections in my field, it’s tough. I’m not sure if the government can do more to help us find jobs or create opportunities.”

Mubarak Abubakar, a student of Physics/Computer at the Federal University of Education, Zaria, asked: “If repayment is expected after securing employment, then when are we likely to get a job—considering the increasing number of graduates roaming the streets without employment? “Does it mean that if you’re not employed by the government, the loan could be waived? Or if you’re unemployed and living independently, you won’t have to pay it back?”

Mujahid Abubakar Musa, a student of the same university, said: “My concern is that not all of us will get white-collar jobs. Suppose I choose to be self-employed after graduation, and my income only covers basic needs, how do I manage loan repayment when I have nothing left to save?”

Hamida Abdulkadir, a new student at Ahmadu Bello University, Zaria, said she had yet to apply for the NELFUND loan due to uncertainty surrounding repayment

“Honestly, I’m not well informed about the package. I’m more concerned about how to pay it back than how to access it. I don’t want anything that could jeopardize my future—something that might involve security agents coming after me.

“I’ve read the requirements and provisions for accessing the loan, but I’mstill unclear about the repayment modalities.

“Remember, I’m a lady. I could decide to get married and not work, especially if myhusband provides for my basic needs. How then do I repay the loan? Will the government come after me even if I don’t secure a job?

“These are some of my worries. So I’ve not yet decided whether to apply for the loan—at least not until I’m convinced about the repayment terms.”

A 300 level student of Bayero University, Kano, Sadiya Isma’il, asked the federal government to consider giving the beneficiaries jobs immediately they graduate so they can pay the loan.

NigeIshaya Yakop of the Plateau State University (PLASU), Bokkos, said: “For me to repay the loan, it means I must be a federal government worker. Therefore, the government should ensure that beneficiaries are employed either by offering them jobs directly, creating employment opportunities, or facilitating an enabling environment for skills acquisition and empowerment programmes.”

On his part, Titus Tanjul, a 300-level student of PLASU, acknowledged the difficulty of securing employment in Nigeria but said he planned to repay the loan through careful budgeting.

He said he had received N180,000 out of the N360,000 requested which helped relieve his financial burden.

“I will be saving from the salary I earn once I begin working. That way, I can gradually repay the loan until it is fully settled. Getting a job is the best option for repaying the loan, because I don’t have the capital to start a business.”

James Bizum Gukyen, a 300-level Chemistry student of the institution, said he received a tuition loan of N80,000, which the school refunded because he had already paid his fees before the disbursement.

“Regarding my ability to repay the loan to the federal government, I really can’t say right now. With the current state of the economy and lack of job opportunities, repayment will be challenging. Currently, I depend on farming to survive,” he said.

He explained that the upkeep allowance of N20,000 was disbursed in four installments, but his current loan status reflects “rejected,” halting further payments.

Abdultawab Enitan who wrote his final examinations last week at the University of Lagos (UNILAG), nursed the fear of the burden of repayment of his loan.

Abdultawab, who acknowledged receiving over N100,000 for the payment of his tuition fee, said: “The government should ensure that it injects more practical skills courses into the curriculum to equip students and even graduates who will be heading to the labour market. Also, there is a need for the government to keep empowering job seekers to either begin their start-ups or all.”

Yusuf Afolayan, a 400-level student of Physics and Electronics at the Lagos State University of Science and Technology (LASUTECH), urged the federal government to learn from how China transformed to become a leader in the tech industry.

“The federal government should make a viable environment for us to work and create a lot of industries. The government can learn from countries like China and Germany on how they created an enabling environment for young people to thrive,” he said.

Sadiq Lawal of the Civil Engineering Department at the University of Lagos, said: “To be honest, the repayment plan has been worrying me. The federal government is to create job opportunities for us so that it will not really become a burden on us.”

Usman Suleiman of the Federal University Dutsin-Ma said:

“The monthly stipends are really helpful, and we hope they resume payments soon. We submitted all documents and followed instructions, but after addressing our concerns, they started repayments briefly, then stopped without explanation. I spent N95,950 in two semesters.”

Another student, Ibrahim Musa Maikaita, appreciated the initial support, especially the N20,000 monthly stipend, but noted that he has not received any funds since May.

“They paid my fees for one academic year when I was in the 300 level. I’ve applied again as a 400-level student hoping for another disbursement. We depend on that money for food and other essentials, especially those of us on campus.

“We were told the loan will be repaid gradually after graduation and employment, so that is not an issue for me.”

Adetunkobo Naomi, a 400-level Accounting student at Ladoke Akintola University, Oyo, said she waited two months after registration before receiving the loan.

“I had to wait for verification, then another month for the school to release the money sent directly to their account. In total, it took two months,” she said.

She confirmed the N168,000 disbursed covered her tuition and that she is satisfied with the repayment plan.

“I used the loan to pay my tuition. Once I start working, the government will deduct repayment from my salary,” she said.

A student at the University of Il?rin, who requested anonymity, said: “We were told the federal government would offer us jobs after graduation, with 20% of our monthly salary deducted until the loan is paid. That’s fair,” he said.

Miss Yusuf, another student, said she started receiving payments in April, though she had not received anything for July.

“It often comes when I least expect it, although I haven’t gotten anything for July,” she said.

She expressed awareness of her repayment obligations, even amid uncertainty of job opportunities after graduation.

Juliet Daniel of Ahmadu Bello University (ABU), Zaria, and the Federal University of Education, Zaria said the disbursement amounts, especially for students in Science and Engineering disciplines, did not always match their actual tuition fees.

Similarly, Zainab Olaide Ali, another beneficiary from the university, said she faced no difficulties during the application process and received her loan after submitting all required documents.

“The money helped me academically. I paid my school fees, completed assignments, and purchased necessary handouts.

“Now, I receive N20,000 monthly after settling my fees. That’s enough to print assignments and buy materials,” she said.

Goodnews Okon, a second-year student of Business Management at the University of Uyo, said she received the loan within 30 days after her application was approved.

On repayment, Okon said NELFUND expects beneficiaries to repay the loan as stipulated so that other students can benefit.

“NELFUND sees refunding the loan as a priority, considering the fact that it has gone a long way to help students across the country. So, it’s expected that students return the favour with ease,” she said.

Biden wrote off $188bn of student loans in US

Daily Trust reports that the United States operates a federal student loan system similar in structure to Nigeria’s NELFUND, offering financial aid to students through grants, scholarships, work-study programmes and repayable loans.

Student loans in the U.S. are typically used to cover tuition, housing, books and living expenses. Repayment begins after graduation, with monthly deductions based on income. However, with the transition to President Donald Trump’s administration, many of Biden’s policies have been rolled back. The new Repayment Assistance Plan (RAP) ties payments to income but removes broad forgiveness options, prompting concerns among borrowers.

According to USA.gov, federal loans remain the most common form of aid, with repayment plans tailored to income levels, including Direct Subsidized and Unsubsidized Loans, PLUS Loans and Income-Driven Repayment (IDR) schemes.

In the final months of his presidency, former American President Joe Biden approved sweeping student loan forgiveness measures, cancelling over $188 billion in debt for 5.3 million borrowers.

In January 2025 alone, $600 million was written off, including debts owed by former students of DeVry University. Biden also expanded the Public Service Loan Forgiveness (PSLF) programme, benefiting over one million public sector workers. (Daily Trust, excluding headline)