The Nigerian Education Loan Fund (NELFUND) has reiterated that applying for student loans is optional, advising tertiary institution students to seek financial support through the scheme only when they genuinely need assistance to fund their education.
The clarification was made in a statement issued in Abuja on Wednesday and signed by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi.
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.
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 added that the facility was interest-free and intended to help beneficiaries overcome financial difficulties associated with pursuing higher education.
It, however, cautioned prospective applicants that the loans came with repayment obligations in line with the provisions of the Student Loans Act, advising students to understand the terms and conditions before applying.
NELFUND maintained that its objective was to ensure that financial hardship did not prevent eligible Nigerian students from pursuing their educational aspirations.
The scheme is 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.
While the interest-free arrangement reduces the cost of borrowing, the fund’s latest clarification underscores the importance of ensuring that students understand that the facility is optional and that beneficiaries are expected to fulfil the applicable repayment requirements.
