From Fred Ezeh, Abuja
The Nigerian Education Loan Fund (NELFUND) has warned students against mistaking the Federal Government’s interest-free education loans for free money, insisting that every beneficiary is legally obligated to repay whatever is borrowed under the scheme.
It stressed that the absence of interest charges does not absolve beneficiaries of repayment obligations under the Student Loans Act, urging prospective applicants to understand the financial commitment before taking advantage of the facility.
The Fund also clarified that participation in the scheme was entirely voluntary, insisting that students who could finance their education without assistance were under no obligation to apply for loans.
In a statement issued in Abuja by its Director of Strategic Communications, Oseyemi Oluwatuyi, NELFUND explained that the scheme was designed to remove financial barriers to higher education and support eligible Nigerian students facing financial difficulties, rather than encourage indiscriminate borrowing.
“The student loan scheme is a support mechanism, not an obligation,” the Fund stated.
According to NELFUND, students should determine whether to apply for the facility based on their individual financial circumstances and genuine need for assistance.
It maintained that compelling every student in tertiary institutions to obtain a loan, irrespective of financial capacity, would contradict the fundamental purpose of the initiative.
The Fund explained that its objective was not to encourage all students to borrow but to ensure that eligible Nigerians who genuinely required financial assistance could access education without being prevented by financial hardship.
It consequently urged students to make informed borrowing decisions, taking into consideration the responsibilities attached to obtaining the facility.
NELFUND also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide prospective applicants appropriately, particularly those requiring financial support to continue their education.
The Fund reaffirmed its commitment to promoting equitable access to higher education and ensuring that financial difficulties did not deny eligible Nigerian students the opportunity to pursue their academic aspirations.