A false circular about student loan repayments has caused confusion. However, the Nigerian Education Loan Fund (NELFUND) has officially dismissed these claims. The agency confirms repayment only starts after a beneficiary is gainfully employed.
The False Alarm and Official Clarifications
Recently, a fake document sparked student anxiety nationwide. This fraudulent circular supposedly outlined repayment procedures.
Source of Confusion: The fake document was widely shared on social media. It falsely claimed students must start repaying their loans immediately.
Official Denials: The University of Benin (UNIBEN) publicly disowned the document. UNIBEN confirmed it did not issue the circular. NELFUND subsequently labeled the reports as “false, misleading, and unfounded”.
Official Statement: Mrs. Oseyemi Oluwatuyi, NELFUND’s Director of Strategic Communications, provided clarity. She stated, “For the avoidance of doubt, no student is required to repay the loan while in school. Repayment does not commence until the beneficiary is gainfully employed, in line with the law”.
Actual Repayment Terms and Conditions
The true repayment terms are defined by law. They are designed to protect students from financial pressure.
1. Legal Safeguards: The NELFUND Establishment Act clearly spells out the conditions.
2. Key Protections:
- No repayment while studying: Beneficiaries are fully shielded during their academic program.
- No repayment during unemployment: Graduates are not required to repay if they are not employed.
3. When Repayment Begins: Obligations start only after a beneficiary secures employment.
4. Repayment Mechanics: For employed graduates, 10% of their monthly salary will be deducted at source.
Verifying Official Information and Scheme Impact
Relying on credible sources is crucial to avoid misinformation. NELFUND communicates solely through official channels.
Official Channels: The public should seek information only from verified NELFUND platforms and formal government outlets. A dedicated WhatsApp channel also provides real-time updates.
Impact of the Scheme: The loan scheme has made a significant impact. For instance, NELFUND has disbursed over N161.97 billion to support 864,798 students for tuition and upkeep.
Common Questions on the Student Loan Scheme
1. What if I participate in NYSC?
Repayment begins two years after completing the National Youth Service Corps (NYSC) program.
2. What happens if I become self-employed?
You must update your business details on the loan portal within 60 days. This ensures proper management of your repayment plan.
3. What are the consequences of defaulting?
The Fund can use legal means for recovery. This includes the Global Standing Instruction (GSI) to retrieve funds from your bank accounts.
4. Can I repay my loan early?
Yes, you are allowed to pay back your loan in full or in part at any time before it becomes due.
NELFUND urges everyone to disregard unverified information. Always check their official channels for accurate updates.