The Nigerian Education Loan Fund (NELFUND) has clarified that applying for its student loan scheme is purely voluntary and urged tertiary students to request funds only if they genuinely face financial hardship.
In an official statement issued on Wednesday, October 21, 2026, from the fund’s headquarters in Abuja, NELFUND addressed emerging misconceptions regarding the mandatory status of the loan across higher institutions.
Speaking on behalf of the agency, the Director of Strategic Communications at NELFUND, Mrs. Oseyemi Oluwatuyi, emphasized that the credit facility was created strictly as a targeted safety net rather than a universal requirement for enrollment.
”The student loan scheme was established to provide financial assistance to Nigerian students who require support to meet the cost of their education. It is designed to remove financial barriers to higher education, promote equal access to learning opportunities, and ensure that no eligible student is denied an education simply because of financial constraints,” Oluwatuyi stated.
”Consequently, the decision to apply for and access the loan should be based on an individual student’s financial circumstances and genuine need for assistance. Making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose.”
NELFUND cautioned against indiscriminate borrowing, reminding students that while the loans are 100% interest-free, they are legally binding financial obligations that require repayment under the Student Loans Act.
Students who can comfortably afford their tuition, institutional fees, and upkeep are under no obligation to apply. The fund charges zero interest on institutional charges and upkeep disbursements.
Beneficiaries are obligated to repay the loan in accordance with the provisions of the Student Loans Act once they complete their education and national service.
NELFUND urged administrators of tertiary institutions, student union leaders, and education stakeholders to refrain from compelling students to sign up or making loan application a prerequisite for registration. The fund tasked school leaders with providing clear and accurate guidance so students can make informed financial decisions.
The agency reaffirmed its commitment to keeping higher education accessible across public universities, polytechnics, and colleges of education nationwide while ensuring that aid reaches those who need it most.
