Student Loans Voluntary, Not Compulsory For Tertiary Students — NELFUND

The Nigerian Education Loan Fund (NELFUND) has clarified that accessing student loans is voluntary and not compulsory for students in Nigerian tertiary institutions.

The fund made the clarification in a statement issued in Abuja on Wednesday, October 21, 2026, signed by its Director of Strategic Communications, Oseyemi Oluwatuyi.

NELFUND explained that the student loan 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.

According to the fund, students should decide whether to apply based on their individual financial circumstances and genuine need for assistance.

It stressed that students who can independently finance their education are under no obligation to apply for or access the facility.

NELFUND warned that making the loan compulsory for all students, regardless of their financial circumstances, would contradict the scheme’s fundamental purpose.

“The 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 fund stated.

It described the initiative as a support mechanism rather than an obligation, emphasising that its primary goal was to help students overcome financial challenges that could prevent them from pursuing or completing their education.

The fund also reiterated that the student loan facility is interest free, providing financial assistance to eligible beneficiaries to meet educational expenses.

However, it cautioned prospective applicants that the loans come with repayment obligations under the provisions of the Student Loans Act.

NELFUND therefore advised students to familiarise themselves with the terms and conditions governing the scheme and make informed decisions before submitting applications.

The agency also urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students appropriately, particularly those struggling to meet the costs of their education.

The clarification comes amid concerns over the implementation of the student loan scheme and reports of students being directed to apply for the facility regardless of their financial circumstances.

NELFUND maintained that access to the loan should remain a personal decision based on financial need, rather than a compulsory requirement for admission, registration or continued studies.

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