The Nigerian Education Loan Fund (NELFUND) has clarified that applying for student loans is optional for tertiary institution students, urging eligible applicants to access the facility only when they need financial assistance.
Key Highlights
- NELFUND says applying for a student loan is optional, not compulsory.
- Students who can fund their education are not required to apply.
- Making the loan compulsory would undermine its purpose, the fund warns.
- The loans are interest-free but must be repaid under the Student Loans Act.
- Institutions and student leaders urged to give students accurate information.
The clarification was contained in a statement signed by Oseyemi Oluwatuyi, Director of Strategic Communications at NELFUND, in Abuja on Wednesday.
The fund explained that the scheme is introduced to remove financial barriers to higher education and ensure that eligible Nigerians are not denied educational opportunities because of their inability to meet education-related expenses.
It stressed that students who can independently finance their education are not required to apply for or obtain loans under the programme.
A Support Mechanism, Not An Obligation
NELFUND warned that making the facility compulsory for all students, regardless of their financial circumstances, would undermine its purpose of supporting those who genuinely need assistance.
“The student loan scheme is a support mechanism, not an obligation,” the fund stated.
It urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students who require financial support through the application process.
Interest-Free, But Repayable
NELFUND also noted that the loans are interest-free and designed to ease the financial burden associated with pursuing higher education.
However, it reminded prospective applicants that beneficiaries are required to repay the loans in accordance with the provisions of the Student Loans Act.
The fund advised students to understand the terms and conditions of the facility before applying, despite the absence of interest charges.
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NELFUND said its objective remained to ensure that financial difficulties did not prevent eligible Nigerian students from pursuing their educational goals.
The scheme forms part of the federal government’s efforts to expand access to tertiary education by providing financial assistance to students who may struggle to meet the costs of their studies. Details of the scheme are available on the NELFUND website.
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