The Nigerian Education Loan Fund (NELFUND) has officially dismissed viral reports claiming that current student beneficiaries are being mandated to begin loan repayments immediately. The agency described a circular recently circulating on social media, which targeted students at institutions like the University of Benin (UNIBEN), as "false, misleading, and unfounded".
The controversy erupted this week when a document, purportedly signed by university officials, appeared to outline immediate repayment guidelines for indebted students. In a swift rebuttal on Saturday, January 24, 2026, NELFUND management clarified that no such directive had been issued, reinforcing that the legal framework governing the scheme protects students from repayment while they are still in school.
"No beneficiary is required to repay the loan while still in school," the agency stated in an official release. NELFUND further clarified that repayment only begins in accordance with the NELFUND Establishment Act, which mandates a grace period and specific employment triggers before any funds are recovered.
Under the current law, repayment is scheduled to begin exactly two years after the beneficiary completes the mandatory National Youth Service Corps (NYSC) programme. Furthermore, the obligation only kicks in once the graduate has secured "gainful employment". For those who remain unemployed after the two-year grace period, repayment remains deferred until they find work.
The agency has urged the public to disregard any unofficial correspondence regarding repayment and to rely solely on the verified portal at nelf.gov.ng.
