NELFUND Warns Tertiary Institutions Student Loans Are Voluntary, Not Compulsory

NELFUND Warns Tertiary Institutions Student Loans Are Voluntary, Not Compulsory The Nigerian Education Loan Fund (NELFUND) has clarified that accessing the Federal Government’s student loan scheme is voluntary, warning tertiary institutions against compelling students to apply for the facility regardless of their financial circumstances. The Fund said the programme was designed to support eligible students who genuinely need financial assistance to pursue their education, rather than make borrowing a requirement for every student enrolled in a Nigerian tertiary institution. In a statement issued on Wednesday in Abuja and signed by its Director of Strategic Communications, Oseyemi Oluwatuyi, NELFUND stressed that students who can independently meet their educational expenses are under no obligation to apply for or access the loan. According to the Fund, the decision to seek financial assistance should depend on individual circumstances and the genuine need for support. “The student loan scheme is a support mechanism, not an obligation,” NELFUND stated, reiterating that its objective is to ensure that financial hardship does not prevent qualified Nigerians from pursuing higher education. The clarification follows public criticism over a reported directive by the Enugu State College of Education (Technical), Enugu, requiring fresh and returning students to apply for the Federal Government’s student loan for the 2026/2027 academic session. The internal memorandum, dated October 6, reportedly directed students in both the Nigeria Certificate in Education and degree programmes to register for the scheme. The directive generated concerns about whether institutions could make participation in a loan programme compulsory, particularly for students who did not need financial assistance. NELFUND’s latest position makes clear that institutions should not present the facility as a mandatory condition for students to continue their education. NELFUND explained that the student loan scheme was established to remove financial barriers to higher education, promote equal access to learning opportunities and assist eligible students who might otherwise struggle to pay education-related expenses. However, the Fund reminded prospective beneficiaries that although the loans are interest-free, they come with repayment obligations under the provisions of the Student Loans Act. It therefore advised students to carefully review the scheme’s terms and conditions and make informed decisions before submitting applications. The agency maintained that the availability of an interest-free loan does not mean every student should borrow, stressing that the facility is intended primarily for those who need financial support. The Fund called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students who require assistance through the application process. It reiterated its commitment to ensuring that financial difficulties do not prevent eligible Nigerians from accessing higher education. NELFUND’s clarification also underscores the importance of ensuring that students understand both the voluntary nature of the scheme and their repayment responsibilities before deciding whether to participate. The Federal Government’s student loan initiative is intended to ease the financial burden of tertiary education and expand access to learning opportunities for eligible students across the country.