NELFUND: Student Loan Access Is Voluntary, Not Compulsory

NELFUND has clarified that its student loan scheme is voluntary, insisting that no student is under any obligation to apply for or access the facility. The Fund said the loan is designed strictly as a support mechanism for students who genuinely cannot afford the cost of their education, not a compulsory requirement for all.

In a statement issued yesterday in Abuja, Mrs Oseyemi Oluwatuyi, NELFUND’s Director of Strategic Communications, explained that the scheme was established to remove financial barriers to higher education and ensure that eligible students are not denied learning opportunities because of financial constraints. She stressed that the decision to apply should be based on each student’s individual financial circumstances and genuine need for assistance.

"Students who do not require financial support are under no obligation to apply for or access the facility" Oluwatuyi said, adding that making the loan compulsory for every student would contradict the scheme’s fundamental purpose.

The Enugu College Memo That Sparked the Clarification

NELFUND’s statement comes amid viral claims that the Enugu State College of Education (Technical) directed all students at the Nigeria Certificate in Education (NCE) and degree levels to enrol for the loan. The institution was reported to have issued the directive in a circular dated October 6 signed by its acting registrar, Patrick Aneke, with students who failed to comply reportedly facing threats of being barred from examinations or forced to drop out.

Interest-Free, But Repayment Is Mandatory

The Fund reiterated that the loan is interest-free and intended to help beneficiaries overcome financial difficulties associated with pursuing higher education. However, Oluwatuyi noted that beneficiaries are still required to repay the loans in accordance with the provisions of the Student Loans Act. She advised students to fully understand the scheme’s terms and conditions before applying.

Stakeholders Told to Guide Students Accurately

NELFUND called on tertiary institutions, student leaders, and other stakeholders to provide accurate information about the scheme and to guide students appropriately—particularly those who need financial assistance to continue their education. The Fund reaffirmed its commitment to ensuring that financial hardship does not prevent eligible Nigerian students from pursuing their educational aspirations.

Source: NELFUND