The Nigerian Education Loan Fund (NELFUND) has clarified that accessing the Federal Government’s student loan scheme is voluntary and not compulsory for students in tertiary institutions across the country.
The agency urged students to apply only when they genuinely need financial assistance to pursue their education, stressing that those who can afford their educational expenses are under no obligation to borrow.
NELFUND’s position was contained in a statement issued in Abuja on Wednesday and signed by its Director of Strategic Communications, Oseyemi Oluwatuyi.
The agency explained that the scheme was established to remove financial barriers to higher education and ensure that eligible Nigerian students are not denied educational opportunities because of financial difficulties.
It warned that making the loan compulsory for all students, regardless of their financial circumstances, would contradict the programme’s purpose.
“NELFUND’s objective is not to encourage every student to borrow, but to ensure that every eligible Nigerian student who genuinely needs financial assistance has the opportunity to access it,” the statement said.
Enugu College Memo Sparks Controversy
The clarification follows controversy over a memo reportedly issued by the Enugu State College of Education (Technical), Enugu, directing all fresh and returning students in its Nigeria Certificate in Education and degree programmes to apply for the student loan for the 2026/2027 academic session.
The memo, dated October 6, 2026, reportedly described applying for and accessing the facility as compulsory and instructed students to contact the college’s NELFUND desk officer.
The directive sparked concerns over whether students could be required to take out loans irrespective of their financial needs. NELFUND’s subsequent clarification reaffirmed that participation in the scheme must remain a personal decision based on individual circumstances.
Loans Are Interest-Free but Repayable
NELFUND also reminded students that although the loans are interest-free, beneficiaries are required to repay them in accordance with the provisions of the Student Loans Act.
The agency advised prospective applicants to understand the scheme’s terms and conditions and carefully consider their financial circumstances before applying.
It emphasized that the facility is intended to support eligible students who face difficulties meeting the costs of higher education, rather than encourage borrowing by every student.
Institutions Urged to Provide Accurate Information
The fund called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students who genuinely need financial assistance.
It reiterated its commitment to ensuring that financial hardship does not prevent eligible Nigerians from pursuing higher education.
NELFUND maintained that the programme should serve as a support mechanism for students in need, rather than an obligation imposed on the entire student population.