The Nigerian Education Loan Fund, NELFUND, has clarified that accessing the Federal Government’s student loan scheme is voluntary and not compulsory for students in Nigerian tertiary institutions.
NELFUND stated this in a clarification issued on Wednesday in Abuja and signed by its Director of Strategic Communications, Mrs Oseyemi Oluwatuyi.
The Fund said the scheme was established to provide financial assistance to students who genuinely need support to meet the cost of their education, stressing that students who can independently finance their studies are under no obligation to apply for the loan.
The Fund explained that the scheme was designed to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that no eligible Nigerian student is denied education because of financial difficulties.
According to NELFUND, students should decide whether to apply based on their individual financial circumstances and genuine need for assistance.
“The decision to apply for and access the loan should be based on an individual student’s financial circumstances and genuine need for assistance,” the Fund said.
It added that students who do not require financial support are not expected to apply for or access the facility.
‘Compulsory access defeats purpose’
NELFUND warned that making the scheme compulsory for all students, regardless of their financial circumstances, would defeat the fundamental purpose of the programme.
“Making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose,” the Fund stated.
It stressed that its objective was not to encourage every student to borrow money but to ensure that eligible Nigerians who genuinely need financial assistance have the opportunity to access it.
“NELFUND’s objective is not to encourage every student to borrow, but to ensure that every eligible Nigerian student who genuinely needs financial assistance has the opportunity to access it,” it said.
Loan is interest-free but repayable
The Fund further described the student loan as a support mechanism rather than an obligation, urging students and stakeholders to understand its purpose and the conditions attached to accessing it.
NELFUND noted that the facility is interest-free, but cautioned that beneficiaries are still required to repay the loans in accordance with the provisions of the Student Loans Act.
It therefore advised students to familiarise themselves with the terms and conditions governing the scheme and make informed decisions before applying.
The Fund’s official student-loan information also states that the scheme provides zero-interest loans for eligible students to cover institutional charges and upkeep.
Stakeholders urged to provide accurate information
NELFUND called on tertiary institutions, student leaders and other stakeholders to provide students with accurate information about the programme and guide those facing financial difficulties appropriately.
The Fund said proper communication and understanding of the scheme were essential to ensuring that students who genuinely need assistance can access it without being misled about its voluntary nature or repayment obligations.
NELFUND reiterated its commitment to expanding access to higher education by addressing financial barriers confronting eligible Nigerian students.
The Fund urged students to carefully assess their financial circumstances before deciding whether to take up the facility.
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