NELFUND Debunks Reports on Immediate Student Loan Repayment, Warns Against Fake Circulars
The Nigerian Education Loan Fund (NELFUND) has issued a firm clarification debunking reports suggesting that students benefiting from the federal government’s student loan scheme have been directed to commence repayment. According to the agency, the reports circulating across media platforms and social networks are entirely false, misleading, and without any legal or institutional basis.
In a statement released on Friday, NELFUND said it became necessary to address the issue following growing public concern and the circulation of a purported circular allegedly outlining repayment procedures for beneficiaries. The Fund emphasized that no such directive has been issued by NELFUND or by the Federal Government, and that the claims should be disregarded.
The clarification also follows an official response from the University of Benin (UNIBEN), whose Vice-Chancellor, Professor Edoba Bright Omoregie (SAN), reportedly disowned the circular being attributed to the institution. According to the university management, the document currently in circulation did not originate from UNIBEN, and the university has not received or implemented any repayment guidelines from NELFUND.
“For the avoidance of doubt, NELFUND has not issued any directive requesting students to begin repayment of their loans,” the Fund stated.
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NELFUND further explained that the repayment structure of the student loan scheme is already clearly defined under the NELFUND Establishment Act. The law provides safeguards to ensure that beneficiaries are not placed under financial pressure while pursuing their education or immediately after graduation.
Under the provisions of the Act, beneficiaries are not required to repay their loans while still enrolled in school. In addition, repayment does not begin if a graduate remains unemployed after completing their studies. Loan repayment only commences after the beneficiary has secured gainful employment, and even then, it is done strictly in line with the legal framework governing the scheme.
The Fund reiterated that these provisions were designed to make the loan scheme student-friendly and accessible, while supporting the broader goal of expanding access to higher education across Nigeria. NELFUND stressed that it remains committed to transparency, fairness, and due process in the administration of the loan programme.
Addressing the spread of misinformation, NELFUND urged students, parents, educational institutions, and the general public to ignore the fake circular and any related publications. The agency warned that the circulation of unverified information could cause unnecessary anxiety among students and undermine confidence in government-backed education initiatives.
NELFUND also emphasized that all official updates regarding loan applications, disbursement, administration, or repayment will only be communicated through its verified communication channels and formal government platforms. Members of the public were advised to avoid relying on unconfirmed reports shared on social media or unofficial forums.
The Fund expressed appreciation to stakeholders for their continued cooperation and support, assuring beneficiaries that their welfare remains a top priority. It reaffirmed its dedication to accountability and responsible governance in the management of the student loan scheme.
For further inquiries or assistance, NELFUND encouraged the public to contact the agency via its official email address or through its verified social media accounts on X (formerly Twitter), Instagram, Facebook, and LinkedIn.
The statement was signed by Mrs. Oseyemi Oluwatuyi, Director of Strategic Communications at the Nigerian Education Loan Fund.