NELFUND Debunks rumors of Life Imprisonment for Student Loan Defaulters

The Nigerian Education Loan Fund has dismissed as “fake news” a viral publication claiming that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation, stamping the doctored image with a prominent red “FAKE” overlay.

A Doctored Publication Exposed

ValidViewNetwork gathered that the Nigerian Education Loan Fund (NELFUND) has dismissed as “fake news” a viral publication claiming that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation.

In a post on its official X account on Sunday, September 6, 2026, NELFUND described the claim as false and shared an image of the purported newspaper front page being circulated online.

The Fabricated Headline

The doctored publication, dated Thursday, May 27, 2027, carried the headline: “All students who fail to repay their loan after graduation will go to jail for life” .

NELFUND placed a prominent red “FAKE” stamp on the image, indicating that the purported announcement did not originate from the government.

The Actual Repayment Framework

Under the current repayment framework, beneficiaries are not required to begin repayment immediately after graduation.

Repayment becomes due two years after completion of the National Youth Service Corps (NYSC) programme, provided the beneficiary is employed or earning an income.

For beneficiaries in paid employment, 10 per cent of their monthly salary, wages and other income is deducted at source by the employer for loan repayment.

Self-employed beneficiaries are required to remit 10 per cent of their total monthly profit to the Fund.

Beneficiaries who remain unemployed and have no income after the repayment period may seek an extension by providing a sworn statement in the manner prescribed by the NELFUND Board.

A History of Misinformation

NELFUND’s clarification is the latest in a series of warnings by the Fund against misleading information concerning the student loan scheme.

The Fund has previously debunked fabricated circulars and notices relating to the suspension of student loan disbursements.

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NELFUND urged members of the public to disregard the viral publication and rely on its official communication channels for information on the student loan scheme.

A Lesson for Nigerian Youths

This is a reminder that misinformation is a weapon. A doctored image caused panic among students and parents. The same people who create fake news will never allow their own children to be victims of such deception. Their families are protected.

For young Nigerians, the lesson is clear: always verify information from official sources. The same people who believe everything they see online will never allow their own children to be misled.

Verify before you share. Trust official sources. And never forget that the truth is always worth the wait.