ABUJA: The Nigerian Education Loan Fund (NELFUND) has clarified that applying for a student loan is voluntary and not a compulsory requirement for students in Nigerian tertiary institutions.
The Fund said the interest-free loan scheme was established to support students facing financial difficulties and ensure that a lack of funds does not prevent qualified Nigerians from pursuing higher education.
In a clarification issued on Wednesday, October 21, 2026, NELFUND stressed that students must decide whether to apply based on their financial circumstances and genuine need for assistance.
The Fund warned tertiary institutions and other stakeholders against giving students the impression that they must obtain loans to continue their education.
According to NELFUND, compelling students who can independently finance their education to borrow would defeat the purpose of the initiative.
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.
NELFUND explained that students who can afford their educational expenses without external assistance are free to continue their studies without applying for the loan.
Despite describing the facility as interest-free, the Fund reminded prospective beneficiaries that the loans are subject to repayment obligations under the Student Loans Act.
It urged students to familiarise themselves with the terms and conditions of the scheme and carefully consider their financial circumstances before submitting applications.
NELFUND maintained that the programme remains a critical Federal Government intervention designed to expand access to higher education and prevent financial hardship from forcing students to abandon their academic ambitions.
The Fund also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students appropriately, particularly those struggling to pay their educational expenses.
The clarification was contained in a statement signed by NELFUND’s Director of Strategic Communications, Mrs Oseyemi Oluwatuyi.
The Fund reiterated its commitment to ensuring that eligible Nigerian students who genuinely need financial assistance can access the facility without being misled into believing that borrowing is a compulsory condition for studying at a tertiary institution in Nigeria.
