The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against misleading students into believing that applying for government-backed student loans is compulsory, stressing that the decision to borrow must remain a personal choice.
The Fund clarified on Wednesday that its interest-free student loan scheme was established to assist eligible Nigerians facing financial difficulties, not to compel every student to take on debt.
NELFUND said students should decide whether to apply based on their individual financial circumstances and genuine need for assistance.
According to the agency, making the loan compulsory for students who can independently afford their education would contradict the programme’s primary objective of removing financial barriers to higher education.
“The 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,” the Fund stated.
The clarification comes amid concerns over reports that some tertiary institutions may be directing students to apply for the facility regardless of whether they need financial support.
NELFUND emphasized that the scheme was designed to ensure that qualified students are not denied educational opportunities simply because they cannot afford tuition and other approved expenses.
It urged university and college authorities, student leaders and other stakeholders to provide accurate information about the programme and guide prospective beneficiaries appropriately.
The agency also reminded students that although the loans are interest-free, beneficiaries are still required to repay them in accordance with the provisions of the Student Loans Act.
It therefore advised prospective applicants to understand the applicable terms and repayment conditions before submitting their applications.
NELFUND maintained that its priority was to expand access to higher education by helping students overcome financial difficulties, rather than encouraging unnecessary borrowing.
The development highlights the importance of ensuring that the implementation of the Federal Government’s student loan initiative remains consistent with its original purpose.
For students who genuinely need financial assistance, the scheme provides an opportunity to pursue their education without being immediately overwhelmed by tuition and other approved educational expenses. However, those who can afford their studies are free to continue without taking a loan.
NELFUND urged tertiary institutions to ensure that no student is misled into treating the loan as a compulsory requirement for continuing their education.
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