By Opeyemi Adelakun
The Nigerian Education Loan Fund has dismissed a viral claim that Nigerian students who fail to repay their education loans after graduation will be sentenced to life imprisonment.
The claim, which circulated in the form of a newspaper front page, purported to show President Bola Tinubu announcing severe punishment for graduates who default on their student loans.
But NELFUND, in a statement posted on its official X account on Sunday, described the publication as “fake news” and urged the public not to rely on it.
The Fund displayed the disputed newspaper image with a prominent “FAKE” marking, signalling that the purported announcement was not an authentic government directive.
The fabricated report was presented as the front page of The Daily Tribune and carried a headline alleging that students who failed to repay their loans after graduation would be jailed for life.
NELFUND said the circulating material was doctored and did not represent the provisions of the law governing the student-loan scheme.
When Repayment Actually Begins
The clarification is significant because the student-loan programme has generated several misleading claims about when beneficiaries are expected to begin repayment.
Under the law establishing NELFUND, repayment does not automatically start immediately after graduation.
A beneficiary’s repayment obligation becomes due two years after completion of the National Youth Service Corps programme, or after obtaining an exemption from NYSC.
However, the law also requires the beneficiary to be gainfully employed before repayment becomes applicable.
For employed beneficiaries, deductions are restricted to 10 per cent of their gross salary or income each month. Where the beneficiary works for an employer, the applicable deduction may be made directly from the salary.
Self-employed beneficiaries are also expected to contribute 10 per cent of their income toward repayment.
The repayment structure is therefore tied to a beneficiary’s employment and earning status rather than an automatic criminal penalty for graduating with an outstanding loan.
Unemployed Graduates Have Provision
The legislation also recognises that some beneficiaries may not immediately secure employment after completing their studies.
Graduates who remain unemployed after the prescribed period can apply for an extension by providing a sworn declaration confirming their unemployment status.
This provision further contradicts the impression created by the viral publication that every beneficiary who fails to repay immediately after graduation would face imprisonment.
NELFUND was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and re-enacted in 2024.
The Fund provides interest-free loans to eligible Nigerian students in public tertiary institutions, covering approved institutional fees and monthly upkeep allowances.
Fresh Warning Over Fake Information
The latest incident adds to a series of false claims that NELFUND has had to address since the student-loan programme began receiving wider public attention.
The Fund has previously clarified misinformation concerning upkeep payments, loan repayment and claims that beneficiaries must begin repaying their loans while still in school or immediately after graduation.
The recurring misinformation has raised concerns over how students and beneficiaries obtain information about the scheme, particularly as fabricated government documents and newspaper-style graphics can easily spread across social media.
NELFUND consequently advised beneficiaries and members of the public to verify claims through its recognised communication channels before accepting or sharing them.
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