NELFUND debunks claim of life jail term over loan repayment

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The Nigerian Education Loan Fund, NELFUND, has dismissed as false a viral publication claiming that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation.

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NELFUND described the claim as “fake news” in a post on its official X account on Sunday, where it also shared an image of the purported newspaper front page being circulated online.

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The doctored publication, dated Thursday, May 27, 2027, carried the headline: “All students who fail to repay their loan after graduation will go to jail for life.”

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NELFUND placed a prominent red “FAKE” stamp on the image, indicating that the purported announcement did not originate from the government.

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The clarification is the latest in a series of warnings by the Fund against misleading information concerning the student loan scheme.

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NELFUND has previously debunked fabricated circulars and notices relating to the suspension of student loan disbursements.

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The Fund was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and re-enacted in 2024.

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It administers zero-interest loans to eligible Nigerian students in public tertiary institutions, covering institutional charges and, where applicable, upkeep allowances.

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Under the current repayment framework, beneficiaries are not required to begin repayment immediately after graduation.

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Repayment becomes due two years after completion of the National Youth Service Corps, NYSC, programme, provided the beneficiary is employed or earning an income.

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For beneficiaries in paid employment, 10 per cent of their monthly salary, wages and other income is deducted at source by the employer for loan repayment.

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Self-employed beneficiaries are required to remit 10 per cent of their total monthly profit to the Fund.

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Beneficiaries who remain unemployed and have no income after the repayment period may seek an extension by providing a sworn statement in the manner prescribed by the NELFUND Board.

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NELFUND urged members of the public to disregard the viral publication and rely on its official communication channels for information on the student loan scheme.

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