NELFUND Debunks Viral Claim of Life Jail for Student Loan Defaulters
The Nigerian Education Loan Fund (NELFUND) has dismissed a viral report claiming that graduates who do not repay student loans could face life imprisonment. The Fund said the publication is fake and that no such law or policy exists. Under the current student loan framework, repayment begins two years after the completion of NYSC, provided the beneficiary is employed. Employed graduates repay through a 10 per cent salary deduction, while self-employed beneficiaries pay directly. Graduates who are unemployed after the two-year period are not required to begin repayment until they get a job or start earning income. NELFUND says eligible beneficiaries may also apply for an extension. The Fund said it has processed over 1.65 million applications and disbursed about ₦355.87 billion in institutional fees and student upkeep allowances as of September 2026.
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