The Nigerian Education Loan Fund (NELFUND) has dismissed as fake reports claiming that students who fail to repay their loans after graduation will be sent to jail.
NELFUND said the reports, which have been circulating online, were false, misleading and unfounded.
The agency was reacting to claims that student loan beneficiaries could face life imprisonment or other prison terms if they defaulted on repayment.
According to NELFUND, “No student will go to jail for loan default.”
The Fund said the claim had no basis in the law governing the student loan scheme and urged students and members of the public to disregard the reports.
Fake news#NELFUNDstudentLoan pic.twitter.com/WR0pAV0Lta
— NELFUND (@NELFUND) September 6, 2026
NELFUND said its loan scheme was designed to help Nigerians access higher education and should not be surrounded by false information that could discourage students from applying.
The agency has, however, said deliberate failure to repay a loan could have consequences.
Its official frequently asked questions page says deliberate default “could result in penalties, legal action,” among other measures.
NELFUND has repeatedly warned the public about false information concerning the student loan scheme and urged students to rely on its official communication channels for accurate information.
The agency also recently dismissed other fake notices concerning the suspension of student loan disbursements and upkeep payments.
NELFUND was established by the Federal Government to provide loans to eligible Nigerian students for tuition, fees and upkeep.
The clarification comes as the student loan scheme continues to expand, with thousands of students using the programme to support their education.
The Fund urged students not to be misled by social media reports and said official information on loan applications, repayment and other matters would be communicated through its verified platforms.
Comments
Add a comment