NELFUND student loan suspension claims dismissed as false as agency assures students that upkeep allowance payments continue

The Nigerian Education Loan Fund, NELFUND, on Thursday, May 28, 2026, dismissed reports circulating online alleging that the Federal Government had suspended upkeep allowance payments under the national student loan scheme, describing the claims as false, misleading and deliberately fabricated.

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In a statement issued by the Director of Strategic Communications, Oseyemi Oluwatuyi, the agency said the reports spreading across social media platforms and online channels were designed to create panic, confusion and distrust among beneficiaries and stakeholders.

The fund stressed that the NELFUND student loan suspension claims did not originate from any official government platform or authorised communication channel linked to the agency.

“The Nigerian Education Loan Fund wishes to categorically refute and condemn the false and misleading publications currently circulating across social media and online platforms alleging that the Federal Government has suspended students’ upkeep allowance payments under the student loan scheme,” the statement read.

NELFUND added that some of the circulating materials included a fabricated statement falsely attributed to the agency as well as an AI-generated newspaper front page purportedly linked to the Nigerian Tribune.

According to the fund, both materials are entirely fake and should be disregarded by students, parents and members of the public.

The agency further clarified that no directive had been issued either by the Federal Government or by NELFUND concerning the suspension of upkeep allowance disbursements.

Reaffirming its commitment to the scheme, the organisation said the NELFUND student loan suspension rumour would not affect ongoing loan and allowance payments being made to eligible beneficiaries nationwide.

The fund maintained that it remains focused on transparency, efficiency and expanding access to higher education through sustainable financing initiatives.

NELFUND also urged the public to avoid sharing unverified information, warning that the spread of misinformation contributes to unnecessary anxiety among students and families already relying on the scheme for educational support.

Beneficiaries and stakeholders were advised to rely strictly on information released through verified official communication channels and social media platforms belonging to the agency.

The student loan initiative was established following the enactment of the Student Loans Act by the Federal Government to support students in public tertiary institutions struggling with tuition and living expenses.

Since the programme commenced, NELFUND has reportedly disbursed more than N206bn in loans to support over 1.6 million students across tertiary institutions in Nigeria.

The loan application portal officially opened on May 24, 2024, with the scheme structured to ensure that beneficiaries begin repayment only after completing their studies and securing employment.

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Officials say the repayment framework is intended to make the programme sustainable while protecting students from financial pressure before they become economically stable.