The Nigerian Education Loan Fund (NELFUND) has clarified that accessing the student loan scheme is voluntary and not a compulsory requirement for students in Nigerian tertiary institutions.
In a statement issued on Wednesday in Abuja and signed by its Director of Strategic Communications, Mrs Oseyemi Oluwatuyi, the Fund reaffirmed its commitment to ensuring that eligible Nigerian students who genuinely need financial assistance can access interest-free loans to pursue their education.
NELFUND explained that the student loan scheme was established to provide financial assistance to Nigerian students who require support to meet the cost of their education, adding that it was designed to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that no eligible student is denied education simply because of financial constraints.
According to the Fund, the decision to apply for and access the loan should be based on an individual student’s financial circumstances and genuine need for assistance, stressing that students who do not require financial support are under no obligation to apply for or access the facility.
The Fund noted that making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose, stating that its 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 described the student loan scheme as a support mechanism and not an obligation.
NELFUND further emphasised that the student loan is interest-free and is intended to help beneficiaries overcome financial difficulties associated with pursuing higher education, but added that like every financial facility, it comes with repayment obligations in accordance with the provisions of the Student Loans Act.
It therefore encouraged students to understand the terms and conditions of the scheme and make informed decisions before applying.
The Fund also encouraged tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students appropriately, particularly those who require financial assistance to continue their education, while restating its commitment to ensuring that financial hardship does not stand in the way of a Nigerian student’s educational aspirations.
The clarification comes amid outrage over a controversial policy at the Enugu State College of Education (Technical), Enugu (ESCET), circulated on the social media, where an internal memo and leaked WhatsApp conversations revealed that the institution had made applying for the NELFUND loan mandatory for students.
According to an internal memorandum, the college management mandated that all students, both at the Nigeria Certificate in Education (NCE) and degree levels, must enroll and access the loan.
The memo dated October 6, 2026 and signed by the Acting Registrar, Patrick A. Aneke, stated that it is now compulsory for every student in NCE and Degree programmes to enroll and access the Nigeria Education Loan Fund, and directed all fresh and continuing students to visit the office of the College NELFUND Desk Officer, Dr. Rufina Agu, and apply for the fund for the 2026/2027 academic session, while also directing all Deans, Directors, Heads of Departments and the Student Union Government to inform students accordingly.
The report noted that students who fail to comply were facing threats of being barred from taking examinations or forced to drop out entirely.