The Nigerian Education Loan Fund (NELFUND) has clarified that accessing its student loan scheme is voluntary and not compulsory for students in Nigerian tertiary institutions, following a viral memo from an Enugu state-owned college directing students to apply for the facility.
The fund made the clarification in a statement issued on Wednesday, stressing that students who do not require financial assistance are under no obligation to apply for or access the loan.
NELFUND said the scheme was established to help Nigerian students meet the cost of their education, remove financial barriers to higher education and promote equal access to learning opportunities.
NELFUND explains purpose of student loan scheme
According to the fund, making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose.
- “The student loan scheme is a support mechanism, not an obligation,” NELFUND said.
- “Students who do not require financial support are under no obligation to apply for or access the facility,” it added.
- The fund reaffirmed that the loan is interest-free and intended to help beneficiaries overcome financial difficulties associated with pursuing higher education.
NELFUND also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students appropriately, particularly those who need financial assistance to continue their education.
The fund reiterated its commitment to ensuring that financial hardship does not prevent eligible Nigerian students from pursuing their educational aspirations.
NELFUND highlights student loan repayment terms
However, it noted that beneficiaries are required to repay the loans in accordance with the provisions of the Student Loans Act.
NELFUND therefore advised students to understand the terms and conditions of the scheme and make informed decisions before applying.
- “Like every financial facility, it comes with repayment obligations in accordance with the provisions of the Student Loans Act,” the Fund said.
- “Students are therefore encouraged to understand the terms and conditions of the scheme and make informed decisions before applying,” it added.
Enugu college makes NELFUND loans compulsory for students
NELFUND’s statement comes on the heels of a memo from the Enugu State College of Education (Technical), Enugu (ESCET), that recently went viral and sparked public outrage over its directive making student loan applications compulsory for the 2026/2027 academic session.
The memo, dated October 6, 2026, and signed by the Acting Registrar, Patrick A. Aneke, stated that it was compulsory for every student (both in NCE and Degree programmes) to enroll and access the Nigeria Education Loan Fund (NELFund).
- “Consequently, all fresh and continuing Students are hereby required to visit the office of the College NELFund Desk Officer Dr. Rufina Agu and apply for the fund, for the 2026/2027 academic session,” the memo stated.
- It also directed “all Deans/Directors, HODs (Academics) and the Student Union Government” to inform students of the requirement.
More on NELFUND
NELFUND’s clarification comes as the Federal Government’s student loan scheme continues to expand, with eligibility requirements and repayment obligations remaining important considerations for prospective beneficiaries. Nairametrics reported in October 2026 that NELFUND had disbursed ₦372.62 billion to students and tertiary institutions since the scheme’s portal opened in May 2024, with more than 1.65 million applications processed.
Earlier, in February 2025, Nairametrics reported that beneficiaries were expected to begin repaying their loans two years after completing the National Youth Service Corps (NYSC), subject to the applicable employment and repayment conditions.
Nairametrics also reported in March 2025 that postgraduate students were ineligible for the Federal Government’s student loan scheme, which was designed to support eligible students pursuing their first degree.