RismadarVoice Reporters, September 7, 2026
The Nigerian Education Loan Fund (NELFUND) has dismissed reports claiming that beneficiaries of its student loan scheme could face imprisonment for failing to repay their loans after graduation.
The agency described the reports circulating on social media as false, misleading and without legal basis.
The clarification followed claims that students who default on loan repayments could be sentenced to life imprisonment or other prison terms.
βNo student will go to jail for loan default,β NELFUND said.
According to the Fund, there is no provision in the law governing the student loan scheme that imposes imprisonment on students simply because they default on repayment.
It therefore urged students and members of the public to disregard the reports and rely on information released through its verified communication channels.
NELFUND warns against deliberate default
While dismissing the imprisonment claim, NELFUND acknowledged that deliberate failure to repay a loan could attract consequences.
The agencyβs official frequently asked questions page states that deliberate default βcould result in penalties, legal action,β among other measures.
NELFUND said the student loan programme was established to expand access to higher education for Nigerians and warned that misinformation could discourage eligible students from benefiting from the initiative.
The agency has previously issued warnings over fake information concerning the loan scheme, including false notices alleging the suspension of loan disbursements and upkeep payments.
NELFUND was established by the Federal Government to provide financial assistance to eligible Nigerian students to cover tuition, fees and upkeep expenses.
As the scheme continues to expand, with thousands of students benefiting from it, the Fund advised beneficiaries and prospective applicants to disregard unverified social media reports.
It said authentic updates on applications, disbursements, repayment and other aspects of the scheme would continue to be published through its official platforms.
