NELFUND Dismisses Claims of Student Loan Repayment, Clarifies Terms of Scheme

 

The Nigerian Education Loan Fund (NELFUND) has dismissed circulating reports claiming that beneficiaries of the federal student loan scheme have been directed to begin loan repayment, describing the information as false, misleading, and unfounded.

In a statement issued in Abuja on January 24,

 2026, NELFUND said it has not issued any

 directive instructing students to commence

 repayment of their loans, urging the public to

 disregard what it described as a fake circular

 currently making the rounds on social and

 traditional media platforms.

According to the Fund, the clarification became

 necessary following an earlier statement by the

 Vice-Chancellor of the University of Benin

 (UNIBEN), Professor Edoba Bright Omoregie

 (SAN), who publicly disowned a purported

 repayment guideline allegedly linked to the

 student loan scheme. The university confirmed

 that the document did not originate from its

 institution and that no official repayment

 framework has been issued by NELFUND or the

 Federal Government.

NELFUND emphasized that the repayment

 structure for student loans is clearly outlined in

 the NELFUND Establishment Act and remains

 unchanged. Under the law, beneficiaries are not

 required to repay their loans while still in school,

 and no repayment is expected after graduation if

 the beneficiary remains unemployed.

The Fund further explained that loan repayment

 will only begin after a beneficiary secures gainful

 employment and in accordance with the

 provisions of the law, stressing that the scheme is

 designed to protect students from financial

 pressure during and immediately after their

 studies.

Reaffirming its commitment to transparency and

 fairness, NELFUND stated that all official

 information regarding loan administration or

 repayment would only be communicated through

 its verified platforms and formal government

 channels.

The agency also called on students, parents,

 institutions, and members of the public to avoid

 spreading unverified information capable of

 causing unnecessary panic and anxiety among

 students benefiting from the scheme.

NELFUND assured beneficiaries that it remains

 committed to due process, accountability, and the

 welfare of Nigerian students, noting that the

 student loan programme is a key part of the

 federal government’s efforts to expand access to

 higher education and promote equal

 opportunities for students across the country.

Why This Matters to Nigerian Students

The clarification provides reassurance to

 thousands of students currently benefiting from

 the student loan scheme, many of whom depend

 on the programme to fund tuition and living

 expenses. By reaffirming that repayment only

 begins after employment, the policy helps reduce

 financial stress and encourages students from

 low-income backgrounds to pursue higher

 education without fear of immediate debt

 repayment. Source: Nigerian Education Loan

 Fund (NELFUND) statement via The Presidency /

 official NELFUND communication channels