The Nigerian Education Loan Fund (NELFUND) has dismissed a social media claim alleging that beneficiaries who fail to repay their education loans after graduation could be sentenced to life imprisonment.

The Fund, in a post published on its official X account on Sunday, described the allegation as fake news and circulated an image of the purported newspaper report that carried the claim.

The manipulated image was designed to resemble the front page of The Daily Tribune and was dated Thursday, May 27, 2027. Its headline alleged that students who defaulted on their education loans after graduation would receive life imprisonment sentences.

NELFUND marked the purported publication with a prominent “FAKE” overlay and called on Nigerians, particularly beneficiaries of its student loan programme, to disregard the information.

The latest clarification follows other false claims previously circulated about NELFUND. These have included fabricated notices alleging that upkeep payments had been suspended, as well as claims that beneficiaries were expected to commence loan repayment while still enrolled in school or immediately after completing their studies.

NELFUND administers interest-free education loans to eligible Nigerian students attending public tertiary institutions under the Student Loans (Access to Higher Education) Act. The scheme is designed to cover institutional fees while also providing beneficiaries with monthly upkeep allowances.

Under the repayment framework, beneficiaries are not required to begin repaying their loans immediately after graduation. Repayment becomes due two years after the beneficiary completes the National Youth Service Corps (NYSC) programme or receives an exemption from the programme, provided the beneficiary is gainfully employed.

For beneficiaries in employment, monthly repayments are limited to 10 per cent of gross income or salary. Where applicable, employers may deduct the amount directly at source. Beneficiaries who are self-employed are similarly required to remit 10 per cent of their income.

The law also provides an option for beneficiaries who remain unemployed after the applicable repayment period to request an extension. Such beneficiaries are required to support the request with a sworn statement.

NELFUND’s latest warning highlights the importance of relying on verified information from the Fund’s official communication channels for details concerning student loans, repayment responsibilities and other requirements under the scheme.

The Fund has therefore urged Nigerians to disregard fabricated publications and social media claims that are not backed by information issued through its official channels.

Source: msmeafricaonline