Student loan is support mechanism, not obligation — NELFUND

Nigerian Education Loan Fund (NELFUND) has urged tertiary institution students to apply for student loans only when they genuinely need financial assistance, stressing that accessing the facility is voluntary and not compulsory.

The clarification was contained in a statement signed by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, in Abuja on Wednesday.

The fund said the scheme was designed to remove financial barriers to higher education and ensure that eligible Nigerian students were not denied educational opportunities because of financial constraints.

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

According to NELFUND, making the loans compulsory for all students, regardless of their financial circumstances, would contradict the scheme’s purpose of supporting those who genuinely need assistance.

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

NELFUND urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students who require financial assistance on how to access it.

The fund explained that the facility was interest-free and intended to help beneficiaries overcome financial difficulties associated with pursuing higher education.

However, it cautioned prospective applicants that the loans came with repayment obligations under the provisions of the Student Loans Act, advising them to understand the terms and conditions before applying.

NELFUND reiterated that its objective was to ensure that financial hardship did not prevent eligible Nigerian students from pursuing their educational aspirations.

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.

The fund’s clarification underscores the voluntary nature of the scheme and the responsibility of beneficiaries to fulfil the applicable repayment requirements.