By Kazeem Waris
The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against misleading students into believing that applying for a student loan is compulsory, stressing that borrowing under the Federal Government’s scheme is entirely voluntary.
The Fund said no student in any Nigerian tertiary institution was obligated to apply for the interest-free facility, insisting that the initiative was designed to support students facing genuine financial difficulties rather than compel everyone to borrow.
In a clarification issued on Wednesday, and signed by NELFUND’s Director of Strategic Communications, Mrs Oseyemi Oluwatuyisday, said students must be allowed to make independent decisions about accessing the loan based on their financial circumstances and need for assistance.
The Fund cautioned that any practice that makes borrowing appear compulsory would undermine the objectives of the scheme, which was established to remove financial barriers to higher education and prevent students from abandoning their academic pursuits because of a lack of funds.
“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,” NELFUND said.
It explained that students who could afford their educational expenses without external assistance were free to continue their studies without applying for the loan.
The clarification comes amid the need for students, tertiary institutions and other stakeholders to have a clear understanding of the purpose and conditions of the Federal Government’s student loan initiative.
NELFUND emphasised that the scheme was a support mechanism, not a mandatory financial arrangement for students seeking admission or pursuing their studies in Nigerian tertiary institutions.
It also urged prospective beneficiaries to understand the terms and conditions of the facility before applying, noting that although the loans are interest-free, they carry repayment obligations under the Student Loans Act.
The Fund advised students to carefully assess their financial needs and make informed decisions before committing to the facility.
While reaffirming its commitment to expanding access to higher education, NELFUND said its priority remained ensuring that financial hardship did not prevent qualified Nigerians from pursuing their educational ambitions.
It called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme, particularly to students struggling to pay their educational expenses.
The Fund warned against creating the impression that taking a loan was a prerequisite for studying in a Nigerian tertiary institution, reiterating that only students who genuinely require financial assistance should consider applying.
