ABUJA — The Nigerian Education Loan Fund (NELFUND) has clarified that applying for the federal interest-free student loan scheme is strictly voluntary and not a mandatory requirement for tertiary institution students across the country.
The clarification was issued on Wednesday, October 21, in response to growing reports and misconceptions that some tertiary institutions and student leadership bodies were encouraging or framing loan application as a compulsory requirement for students.
In a official statement signed by NELFUND Director of Corporate Communications, Oseyemi Oluwatuyi, the agency cautioned tertiary institutions against any interpretation or administrative practice that makes borrowing compulsory, regardless of a student’s financial status.
“The objective of the scheme 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,” Oluwatuyi stated. “The student loan scheme is a support mechanism, not an obligation. Students who can independently afford their educational expenses are under no obligation to apply.”
NELFUND warned that compelling students who do not require financial aid to take on debt contradicts the program’s core purpose of breaking financial barriers to higher education and aiding vulnerable scholars.
While reiterating that the loans are interest-free, NELFUND reminded prospective applicants that the facility carries legal repayment obligations under the Student Loans Act. The Fund urged students to carefully review all terms and conditions before applying and called on university administrators and student leaders to disseminate accurate guidance across campuses.
