The Nigerian Education Loan Fund has dismissed a viral publication alleging that students who fail to repay their education loans after graduation could be sentenced to life imprisonment.
The agency described the information as false, following the circulation of an image purportedly showing the front page of The Daily Tribune.
NELFUND shared the image on its official X account on Sunday, pointing out that the publication, dated Thursday, May 27, 2027, was fabricated.
The supposed newspaper report carried the headline: “Tinubu: All students who fail to repay their loan after graduation will go to jail for life.”
To clarify the situation, NELFUND marked the circulated image with a large red “FAKE” stamp, urging the public not to rely on the information.
This is not the first time the agency has had to counter misleading information about the student loan programme. Previous false reports have included claims concerning the stoppage of upkeep payments and allegations that beneficiaries would be required to start repaying their loans while still studying or immediately after graduation.
NELFUND operates under the Student Loans (Access to Higher Education) Act, which established the framework for providing financial assistance to eligible Nigerian students in public tertiary institutions.
The scheme provides interest-free loans to help beneficiaries meet institutional fee obligations and receive monthly upkeep support.
Repayment does not begin immediately after graduation. Under the existing arrangement, beneficiaries become liable to repay two years after completing the NYSC programme or receiving an exemption, provided they have secured gainful employment.
For employed beneficiaries, monthly repayment is limited to 10 per cent of their gross salary or income, with deductions made at source where applicable. Self-employed beneficiaries are required to remit an equivalent proportion of their earnings.
NELFUND also provides an option for beneficiaries who remain unemployed after the stipulated period to request an extension by submitting a sworn declaration.