By By Elizabeth Ugbo
The Nigerian Education Loan Fund (NELFUND) on Sunday dismissed a viral publication claiming President Bola Tinubu approved life imprisonment for graduates who fail to repay student loans. NELFUND said the publication is fake and urged Nigerians to rely on its official channels for accurate information about the student loan scheme.
NELFUND Labels Viral Publication Fake
The agency issued the clarification through its official X account on Sunday.
NELFUND also shared an image of the alleged newspaper front page online.
A prominent red “FAKE” stamp appeared across the circulating publication.
The doctored publication carried the date Thursday, May 27, 2027.
It also claimed that Tinubu had declared life imprisonment for loan defaulters.
However, NELFUND rejected the claim and described it as fake news.
What NELFUND Loan Repayment Rules Say
Under the current repayment framework, graduates do not face automatic life imprisonment.
Instead, repayment depends on the beneficiary’s employment or income status.
For beneficiaries in paid employment, employers deduct 10 per cent of monthly salary, wages and other income.
The employer then remits the deduction for loan repayment.
Meanwhile, self-employed beneficiaries must repay 10 per cent of their total monthly profit.
Therefore, the repayment system links payments to the beneficiary’s income.
Unemployed Graduates Can Seek Repayment Extension
NELFUND also explained provisions for beneficiaries without jobs or income.
Graduates who remain unemployed after the repayment period can request an extension.
However, they must provide a sworn statement in the manner prescribed by the NELFUND Board.
This provision means unemployment does not automatically lead to imprisonment.
Instead, eligible beneficiaries can follow the prescribed process for an extension.
When Does NELFUND Loan Repayment Begin?
NELFUND clarified that repayment does not begin immediately after graduation.
Under the current framework, repayment becomes due two years after completing the National Youth Service Corps programme.
The repayment obligation also depends on whether the beneficiary has employment or income.
Therefore, graduates do not have to begin repayment immediately after leaving school.
NELFUND’s student-loan terms similarly provide for repayment two years after NYSC completion.
NELFUND Warns Against Fake Student Loan Information
The latest clarification follows several warnings from NELFUND about misleading information.
The Fund has previously debunked fake circulars and notices about student loan disbursements.
It has also rejected claims that the government suspended the student loan programme.
Similarly, NELFUND dismissed claims that beneficiaries must repay loans while still in school.
The Fund urged Nigerians to verify such claims before sharing them online.
About the NELFUND Student Loan Scheme
The Federal Government established NELFUND under the Student Loans (Access to Higher Education) Act.
President Bola Tinubu signed the legislation into law before its re-enactment in 2024.
The Fund administers zero-interest loans to eligible Nigerian students in public tertiary institutions.
The scheme covers institutional charges and, where applicable, upkeep allowances.
Consequently, the programme aims to improve access to higher education for eligible Nigerians.
NELFUND advised the public to obtain student loan updates from its verified communication channels.
