The Nigerian Education Loan Fund (NELFUND) has urged students in Nigerian tertiary institutions to assess their financial needs before applying for student loans, stressing that participation in the scheme is voluntary.
The clarification was contained in a statement issued in Abuja on Wednesday and signed by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi. The fund said students who could afford their educational expenses were not required to obtain loans under the programme.
According to the agency, the scheme was introduced to remove financial barriers to higher education and prevent eligible Nigerians from abandoning their educational ambitions because of a lack of money.
“The student loan scheme is a support mechanism, not an obligation,” the fund stated.
NELFUND explained that requiring every student to borrow money, regardless of their financial circumstances, would defeat the purpose of the initiative. It said the facility was designed to assist students who genuinely needed financial support rather than encourage unnecessary borrowing.
The agency called on tertiary institutions, student associations and other stakeholders to provide accurate information about the programme. It urged them to guide students experiencing financial difficulties on the application process and the conditions for accessing the facility.
Although the loans are interest-free, NELFUND reminded prospective beneficiaries that the money must be repaid in accordance with the provisions of the Student Loans Act. It advised applicants to understand the applicable terms and conditions before accepting the facility.
The fund said its objective was to ensure that financial hardship did not prevent qualified Nigerian students from pursuing tertiary education. The scheme is part of the Federal Government’s efforts to improve access to higher education by providing financial assistance to eligible students who may struggle to meet the cost of their studies.
For students considering the facility, the clarification means that the decision to apply should depend on their actual financial circumstances. Those who can meet their educational expenses without borrowing may continue their studies without accessing the loan, while eligible students facing financial difficulties can consider applying after reviewing the repayment requirements.
NELFUND’s position also highlights the need for students to distinguish between financial assistance and a grant that does not require repayment. While the interest-free arrangement removes interest charges, beneficiaries remain responsible for repaying their loans under the applicable law.
The agency encouraged students and their institutions to share reliable information about the scheme so that those who need assistance can make informed decisions about financing their education.
