The Nigerian Education Loan Fund (NELFUND) has clarified that applying for student loans is voluntary, urging students in tertiary institutions to seek financial assistance only when they genuinely need it to pursue their education. The clarification was contained in a statement signed by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi…...
The Nigerian Education Loan Fund (NELFUND) has clarified that applying for student loans is voluntary, urging students in tertiary institutions to seek financial assistance only when they genuinely need it to pursue their education.
The clarification was contained in a statement signed by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi on Wednesday.
The fund explained that the student loan scheme was established to remove, “financial barriers to higher education and ensure that eligible Nigerian students were not denied educational opportunities because of financial constraints.”
It stressed that students who could afford their educational expenses were under no obligation to apply for or access the facility.
NELFUND said making the loans compulsory for all students, irrespective of their financial circumstances, would contradict the purpose of the scheme, which is to support those who need financial assistance rather than encourage indiscriminate borrowing.
“The student loan scheme is a support mechanism, not an obligation,” the fund stated.
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It urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students who require financial support on how to access it.
The fund explained that the facility was interest-free and designed to assist beneficiaries in addressing financial challenges associated with pursuing higher education.
However, it warned prospective applicants that the loans carried repayment obligations under the Student Loans Act, urging students to familiarise themselves with the terms and conditions before applying.
NELFUND reiterated that its goal was to ensure that financial constraints did not prevent eligible Nigerian students from achieving their educational aspirations.
The scheme forms part of the Federal Government’s efforts to widen access to tertiary education by providing financial support to students who may find it difficult to meet the costs of their studies.
Although the interest-free arrangement reduces borrowing costs, the fund’s latest clarification highlights the need for students to understand that the facility is optional and that beneficiaries are required to meet the applicable repayment obligations.