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.
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.
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.”
NELFUND placed a prominent red “FAKE” stamp on the image, indicating that the purported announcement did not originate from the government.
The clarification is the latest in a series of warnings by the Fund against misleading information concerning the student loan scheme.
NELFUND has previously debunked fabricated circulars and notices relating to the suspension of student loan disbursements.
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.
It administers zero-interest loans to eligible Nigerian students in public tertiary institutions, covering institutional charges and, where applicable, upkeep allowances.
Under the current repayment framework, beneficiaries are not required to begin repayment immediately after graduation.
Repayment becomes due two years after completion of the National Youth Service Corps, NYSC, programme, provided the beneficiary is employed or earning an income.
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.
Self-employed beneficiaries are required to remit 10 per cent of their total monthly profit to the Fund.
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.
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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