_...Says Student loan scheme is voluntary, not compulsory_
The Nigerian Education Loan Fund (NELFUND) has clarified that its interest-free student loan scheme is voluntary and not compulsory for students in Nigerian tertiary institutions, stressing that the initiative is designed to support those who genuinely need financial assistance to pursue their education.
The Fund explained that students who can independently afford their tuition fees and other educational expenses are under no obligation to apply for or access the facility.
NELFUND made the clarification in a statement issued in Abuja on Wednesday, October 21, 2026, and signed by its Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi.
According to the Fund, the student loan initiative was established to eliminate financial barriers to higher education, promote equal access to learning opportunities and ensure that eligible Nigerian students are not denied education because of financial difficulties.
It emphasised that the decision to apply should be based on individual financial circumstances and the genuine need for support, noting that making the scheme compulsory for every student, regardless of financial capacity, would contradict its primary objective.
“The objective is not to encourage every student to borrow money, but to ensure that those who genuinely require financial assistance have access to the facility,” the Fund stated.
NELFUND further stressed that the scheme should be regarded as a support mechanism rather than an obligation imposed on students.
While reaffirming that the facility is interest-free, the Fund reminded prospective applicants that beneficiaries are required to repay their loans in accordance with the provisions of the Student Loans Act.
It urged students to familiarise themselves with the scheme’s terms and conditions before applying, emphasising the importance of making informed decisions about borrowing.
The Fund also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the initiative and guide students appropriately, particularly those experiencing financial difficulties.
It urged stakeholders to ensure that eligible students who need assistance are aware of the opportunity and understand how to access it.
NELFUND reiterated its commitment to expanding access to higher education by helping students overcome financial challenges, maintaining that no eligible Nigerian student should be prevented from pursuing their academic aspirations because of a lack of funds.
The clarification reinforces the Fund’s position that the student loan scheme is intended to provide financial relief to students who need it, rather than compel the entire student population to take on loans.
