Unemployed beneficiaries of the Nigerian Education Loan Fund student loan are required to formally notify the Fund of their employment status if they remain without a job two years after completing the National Youth Service Corps programme.

According to NELFUND’s published guidance sighed by PUNCH Online on Friday, beneficiaries who are still unable to secure employment after the two-year post-NYSC period must notify the Fund through a sworn court affidavit every three months.

The requirement is part of the conditions governing repayment of the student loan and allows beneficiaries who remain unemployed to formally declare their status rather than stop communicating with the Fund.

Here is what unemployed beneficiaries should know:

1. Wait until two years after NYSC

NELFUND states that “The loan is due for repayment 2 years after the completion of NYSC.”

This means the repayment obligation does not become due immediately after graduation or during NYSC. The two-year period begins after the beneficiary completes the service programme or receives an official exemption.

Beneficiaries who remain unemployed after the two years must then take steps to formally notify the Fund of their status.

2. Swear a court affidavit

An unemployed beneficiary is required to swear an affidavit confirming that they are still unable to secure employment.

NELFUND’s FAQ specifically states, “The beneficiary should notify NELFUND by sworn court affidavit every 3 (three) months after two years post NYSC if still unable to gain 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 keep a record of the beneficiary’s employment status once the loan becomes due.

Beneficiaries should retain copies of their affidavits and any documents submitted to the Fund for their records.

4. Repeat the affidavit every three months

The affidavit requirement does not end after the first declaration.

An unemployed beneficiary must notify NELFUND through a sworn court affidavit every three months for as long as they remain unable to gain employment.

This means that a beneficiary who remains unemployed three months after the first declaration would be required to make another sworn declaration and continue the process.

5. What happens when you get a job?

The situation changes once an unemployed beneficiary secures employment.

The beneficiary is expected to update their employment details with NELFUND so that the Fund can apply the relevant repayment arrangement.

NELFUND states, “Ten percent (10%) of the beneficiary’s salary will be deducted at source by the employer.”

This means 10 per cent of the beneficiary’s salary will be deducted by the employer and remitted to the Fund.

6. What if you become self-employed?

Beneficiaries who become self-employed also have repayment obligations.

NELFUND states, “Self-employed beneficiaries are required to remit 10% of their monthly profit to the Fund.”

Such beneficiaries are expected to notify the Fund of their change in status and comply with the applicable repayment requirement.

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 will change once they begin earning an income.

Source: https://punchng.com/explainer-how-unemployed-nelfund-beneficiaries-can-notify-fg-of-status/