Student loans voluntary, not compulsory – NELFUND tells tertiary institutions

… Fund says borrowing is voluntary, urges institutions to stop misleading students

The Nigerian Education Loan Fund (NELFUND) has declared that no student in Nigeria’s tertiary institutions is under any obligation to apply for a student loan, insisting that the scheme is designed to assist those facing financial hardship, not compel every student to borrow.

The Fund, in a clarification issued on Wednesday, stressed that accessing the interest-free loan remains a personal decision that must be guided by a student’s financial circumstances and genuine need for assistance.

NELFUND’s position comes amid the need to ensure that students, tertiary institutions and other stakeholders clearly understand the purpose and conditions of the federal government’s student loan initiative.

The Fund explained that the scheme was established to break financial barriers to higher education and prevent eligible Nigerian students from abandoning their academic ambitions because of a lack of funds.

It, however, cautioned against any interpretation or practice that could make borrowing compulsory for students, irrespective of their financial capacity.

According to the Fund, compelling students who do not need financial assistance to take loans would defeat the very purpose of the programme.

“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 added that the loan scheme was a support mechanism rather than an obligation, stressing that students who could independently meet their educational expenses were free to pursue their studies without applying for the facility.

Beyond clarifying the voluntary nature of the scheme, NELFUND reminded prospective beneficiaries that the interest-free facility carries repayment obligations under the provisions of the Student Loans Act.

The Fund, therefore, urged students to familiarise themselves with the terms and conditions governing the loans and make informed decisions before submitting applications.

While describing the scheme as a critical intervention to expand access to higher education, NELFUND maintained that its priority remained ensuring that financial difficulties did not prevent qualified Nigerian students from pursuing their educational aspirations.

The Fund also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students appropriately, particularly those struggling to finance their education.

It reiterated its commitment to ensuring that eligible students who genuinely require financial assistance could access the facility without being misled into believing that taking a loan was a compulsory condition for studying in a Nigerian tertiary institution.

The clarification was contained in a statement signed by NELFUND’s Director of Strategic Communications, Mrs Oseyemi Oluwatuyi.