The Nigerian Education Loan Fund has clarified that student loans are voluntary and not compulsory for tertiary institution students. The fund, through a statement signed by its Director of Strategic Communications Oseyemi Oluwatuyi in Abuja on Wednesday, urged students to apply only when they genuinely need financial assistance to pursue their education. NELFUND said that students who could afford their educational expenses were under no obligation to access the facility.
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. 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, NELFUND said. The fund described the student loan scheme as a support mechanism, not an obligation.
NELFUND 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 facility is interest-free and intended to help beneficiaries overcome financial difficulties associated with pursuing higher education. However, the fund 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.
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. NELFUND maintained that its objective was to ensure that financial hardship did not prevent eligible Nigerian students from pursuing their educational aspirations. The fund's 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.