NELFUND Rejects Claim Students Face Life Jail Term Over Loan Default

NELFUND has rejected a viral claim that Nigerian students who fail to repay education loans after graduation will face life imprisonment.

The agency said the claim was false and did not come from the Federal Government. It responded on Sunday after a purported newspaper front page circulated online with a headline alleging that President Bola Tinubu had approved life jail terms for loan defaulters.

Channels Television reported that the circulating image was dated Thursday, May 27, 2027, and that NELFUND marked it with a red “FAKE” stamp. Daily Post also reported that the agency described the claim as fake news on its verified X handle.

The clarification comes after earlier false notices about the student loan programme, including claims about the suspension of disbursements.

NELFUND administers zero-interest loans for eligible Nigerian students in public tertiary institutions. Under the current framework reported by Channels Television, repayment does not start immediately after graduation. It begins two years after completion of the National Youth Service Corps programme and applies where the beneficiary is employed or earning income.

For workers in paid employment, 10 per cent of monthly salary, wages and other income is deducted at source. Self-employed beneficiaries are required to remit 10 per cent of monthly profit. Beneficiaries without income after the repayment period can seek an extension through a sworn statement prescribed by the board.

Sources: Daily Post, Channels Television