NELFUND dismisses claims of immediate student loan repayment

The Nigerian Education Loan Fund (NELFUND) has dismissed  reports claiming that beneficiaries of the federal student loan scheme have been asked to commence repayment.

In a statement issued on Saturday by the Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, the Fund said it had observed with concern the circulation of reports in the media and on social platforms suggesting that students were being directed to begin repayment of their loans, stressing that no such directive had been issued.

“NELFUND wishes to categorically state that these reports are false, misleading, and unfounded,” the statement said.

The clarification followed an earlier statement by the Vice-Chancellor of the University of Benin (UNIBEN), Prof. Edoba Bright Omoregie (SAN), who disowned a purported circular outlining repayment procedures for NELFUND loans.

According to NELFUND, the University of Benin confirmed that the document did not originate from the institution and that no repayment guideline has been issued by either NELFUND or the Federal Government.

“For the avoidance of doubt, NELFUND has not issued any directive requesting students to begin repayment of their loans,” the Fund stated.

NELFUND further explained that the repayment process is clearly provided for under the NELFUND Establishment Act, which shields beneficiaries from repayment obligations until certain conditions are met.

It noted that “no beneficiary is required to repay the loan while still in school,” adding that repayment is also not required “while a beneficiary remains unemployed after graduation.”

The Fund stressed that loan repayment only begins “in line with the provisions of the law, after gainful employment, as applicable.”

Reaffirming its commitment to student welfare, NELFUND said it remains focused on expanding access to higher education through “transparent, fair, and student-friendly financing solutions.”

The agency warned students, parents and institutions against spreading unverified information, urging the public to rely only on official communication channels.

“Any official information regarding loan administration or repayment will only be communicated through verified NELFUND channels and formal government platforms,” the statement added.