The University of Benin (UNIBEN) and the Nigerian Education Loan Fund (NELFUND) have issued a joint urgent disclaimer regarding a viral “repayment circular” making the rounds on social media. Both institutions have officially labeled the document as fake and a malicious attempt to defraud unsuspecting students and parents.
The clarification, released today, Sunday, 25 January 2026, warns that the repayment phase for current loan beneficiaries has not commenced, contrary to the claims in the fraudulent document.
The viral circular, which carried forged logos of both UNIBEN and NELFUND, falsely claimed that:
Students were required to start immediate monthly repayments while still in school.
Payments should be made into a “specialized recovery account” (which was actually a private bank account).
Failure to pay would result in the immediate revocation of the loan and expulsion from the university.
In a swift response to protect the public, both bodies clarified the following:
Repayment Grace Period: NELFUND reiterated that per the Student Loan Act, repayment only begins two years after the beneficiary has completed their National Youth Service Corps (NYSC) program and secured employment.
No Direct Bank Transfers: Official repayments will be handled via automated payroll deductions or direct self-declaration through the official NELFUND portal, never via private bank accounts shared on WhatsApp or Telegram.
UNIBEN’s Stance: The university management confirmed they have not issued any internal memo regarding loan collections, as the fund is managed federally, not by individual schools.
NELFUND Repayment: The Real Rules
| Feature | Fake Circular Claim | Official NELFUND Policy |
| Start Date | “Immediate / While in School” | 2 Years Post-NYSC |
| Payment Channel | “Private Bank Account” | Employer Deduction / Official Portal |
| Percentage | “Fixed Monthly Fee” | 10% of Monthly Income |
| Penalties | “Immediate Expulsion” | Legal action only for willful default |
Statement from NELFUND Spokesperson
“We urge students to be vigilant. Scammers are attempting to exploit the success of the student loan scheme to cause panic. All official communications regarding your loan status and future repayment will come directly through your registered dashboard on the NELFUND portal and nowhere else.”
