NELFUND Warns Schools: Student Loans Are Voluntary, Not Compulsory

NELFUND Warns Schools: Student Loans Are Voluntary, Not Compulsory

The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against compelling students to apply for the Federal Government’s student loan scheme, insisting that accessing the facility is voluntary and not a condition for studying in Nigerian institutions.

The clarification followed controversy over a directive reportedly issued by the Enugu State College of Education (Technical), Enugu, requiring all fresh and returning students to apply for and access the loan for the 2026/2027 academic session.

In a statement issued in Abuja on Wednesday, October 21, 2026, NELFUND said students should determine whether to apply based on their individual financial circumstances and genuine need for assistance.

The statement was signed by the fund’s Director of Strategic Communications, Oseyemi Oluwatuyi.

NELFUND explained that the student loan scheme was established to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that eligible Nigerians were not denied education because of financial difficulties.

It stressed that students who could independently afford their educational expenses were under no obligation to apply for or access the facility.

“The student loan scheme is a support mechanism, not an obligation,” the fund stated.

NELFUND added that making the loan compulsory for every student, regardless of their financial circumstances, would defeat the purpose of the programme.

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According to the agency, its objective is not to encourage indiscriminate borrowing but to ensure that eligible students who genuinely require financial assistance can access support to pursue their academic ambitions.

The clarification comes amid concerns over an internal memorandum reportedly issued by the management of the Enugu State College of Education (Technical).

The memorandum, dated October 6, 2026, and signed by the institution’s Acting Registrar, Patrick A. Aneke, reportedly directed all students in its Nigeria Certificate in Education and degree programmes to apply for the loan for the 2026/2027 academic session.

It also instructed deans, directors, heads of departments and student representatives to communicate the directive to students and asked them to visit the institution’s NELFUND desk officer for assistance with applications.

Reports surrounding the directive indicated that students who failed to comply could face restrictions on taking examinations or continuing their studies, raising concerns about the implications of compelling students to take loans.

NELFUND’s clarification reinforces the distinction between making financial assistance available to eligible students and requiring every student to borrow, irrespective of whether they need the support.

The fund further explained that although its loans are interest-free, beneficiaries are required to repay them in accordance with the provisions of the Student Loans Act.

It therefore urged prospective applicants to understand the scheme’s terms and conditions and make informed decisions before applying.

NELFUND also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students who require financial assistance through the application process.

The agency reiterated its commitment to ensuring that financial hardship does not prevent eligible Nigerians from pursuing higher education.

The development has renewed attention on the implementation of the Federal Government’s student loan programme and the need for institutions to ensure that students understand both the benefits and repayment obligations associated with the facility.

NELFUND maintained that the scheme should remain an avenue for financial support for students who need it, rather than a compulsory borrowing arrangement imposed on the entire student population.