NELFUND Breaks Silence On Life Imprisonment For Student Loan Defaulters

The Nigerian Education Loan Fund (NELFUND) has dismissed as false a viral claim that President Bola Tinubu approved life imprisonment for graduates who fail to repay their student loans.

The agency issued the clarification on Sunday following the circulation of an image purportedly showing the front page of a newspaper carrying a report that alleged student loan defaulters would face life imprisonment.

NELFUND described the publication as fake and shared the purported newspaper page on its official social media platform to alert members of the public.

The agency explained that its student loan scheme operates under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and subsequently re-enacted in 2024.

According to NELFUND, the scheme provides interest-free loans to eligible Nigerian students enrolled in public tertiary institutions. The financial support is intended to assist beneficiaries with approved institutional charges and, where applicable, provide monthly upkeep allowances.

The agency noted that beneficiaries are not required to begin repayment immediately after completing their studies.

Under the existing repayment framework, repayment becomes due two years after a beneficiary completes the National Youth Service Corps (NYSC) programme or obtains an exemption from the scheme.

NELFUND further explained that repayment is linked to employment, meaning beneficiaries are expected to commence repayment once they become gainfully employed after the stipulated period.

The agency’s clarification was aimed at dispelling the viral claim and reassuring students and beneficiaries that there is no government-approved policy imposing life imprisonment on graduates who default on their education loans.