NELFUND Debunks Immediate Student Loan Repayment Claims

NELFUND Debunks Immediate Student Loan Repayment Claims

The Nigeria Education Loan Fund (NELFUND) has dismissed widespread claims that beneficiaries of the federal student loan scheme are required to begin immediate repayment, describing the reports as false, misleading, and inconsistent with the law.

In a statement issued on Friday, NELFUND clarified that no student is expected to repay any loan while still in school or without gainful employment, stressing that repayment conditions are clearly outlined in the NELFUND Establishment Act.

The clarification followed the circulation of online reports and an alleged university notice suggesting that students would be required to commence loan repayment shortly after disbursement. NELFUND said such claims did not originate from the agency or the Federal Government.

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According to the fund, loan repayment only begins after beneficiaries have completed their studies, finished the compulsory National Youth Service Corps (NYSC) programme, and secured employment, with a statutory moratorium period built into the scheme.

The agency urged students and parents to rely solely on official communication channels, warning that misinformation could undermine public confidence in the student loan programme, which is designed to expand access to tertiary education.

Meanwhile, NELFUND continues to scale up operations, having disbursed over ₦161 billion in student loans to more than 864,000 beneficiaries nationwide, according to recent figures. The fund has also reiterated its commitment to transparency, accountability, and digital processing of applications to prevent fraud and misinformation.

The latest clarification comes amid broader federal efforts to strengthen financial governance and reporting systems, including reforms in education financing and the integration of specialised financial frameworks into Nigeria’s regulatory architecture.

NELFUND Debunks Immediate Student Loan Repayment Claims