NELFUND Reiterates Student Loans Are Voluntary, Not Mandatory

The Nigerian Education Loan Fund has restated that participation in its student loan programme remains entirely optional for tertiary institution students across the country. In a statement released Wednesday through its Director of Strategic Communications, Oseyemi Oluwatuyi, NELFUND emphasised that the scheme was not designed to compel borrowing but rather to assist students facing genuine financial hardship in meeting educational costs.

The clarification emerged after an Enugu State-based college circulated a memo directing its students to apply for the loans, sparking public backlash and raising questions about how the scheme was being implemented at institutional level. NELFUND used the opportunity to reaffirm that only students without adequate means to finance their studies should pursue the facility, while those capable of covering expenses independently face no pressure to borrow.

According to the fund, the scheme's primary objective is to remove financial obstacles that might otherwise prevent eligible Nigerians from accessing higher education. The loans carry no interest charges but remain subject to repayment obligations specified under the Student Loans Act.

NELFUND emphasised that students should only apply when they have exhausted personal resources and genuinely require support to continue their education. The fund's restatement underscores a key distinction between the policy's intent and how some institutions may have interpreted their role in promoting it.

By clarifying that participation remains voluntary, NELFUND has sought to prevent unnecessary debt accumulation among students who do not require financial assistance, while maintaining the scheme's availability for those who do.