NELFUND Says Student Loans Are Voluntary, Not Compulsory

The Nigerian Education Loan Fund (NELFUND) has reiterated that accessing the Federal Government’s student loan scheme is voluntary, urging tertiary institutions to ensure students are not compelled to apply regardless of their financial circumstances.

The clarification was contained in a statement issued in Abuja on Wednesday and signed by the fund’s Director of Strategic Communications, Oseyemi Oluwatuyi.

NELFUND explained that the scheme was established to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that eligible students were not denied education because of financial difficulties.

It said students should decide whether to apply based on their individual financial circumstances and genuine need for assistance. Those who could afford their educational expenses were under no obligation to access the facility.

The fund warned that making the loans compulsory for all students, irrespective of their financial needs, would contradict the initiative’s purpose of supporting those who required assistance rather than encouraging indiscriminate borrowing.

The clarification followed public concern over a reported directive by the Enugu State College of Education (Technical), which instructed fresh and returning students in its Nigeria Certificate in Education and degree programmes to apply for the loan for the 2026/2027 academic session.

The institution’s reported directive generated debate over whether students could be required to access a government loan as a condition of their education.

NELFUND stressed that its objective was not to encourage every student to borrow but to ensure that eligible Nigerians who genuinely needed financial support had the opportunity to obtain it.

The agency also clarified that although the loan was interest-free, beneficiaries were required to repay it in accordance with the provisions of the Student Loans Act.

It therefore advised prospective applicants to understand the scheme’s terms and conditions and make informed decisions before committing to the facility.

NELFUND called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students who needed financial assistance through the application process.

The fund reaffirmed its commitment to ensuring that financial hardship did not prevent eligible Nigerian students from pursuing higher education.

It maintained that the scheme should remain a means of easing the financial burden of education for students in need, rather than a compulsory borrowing arrangement for all tertiary institution students.