Student Loans Voluntary, Not Compulsory for Tertiary Students - NELFUND

By Aina Joseph · Published October 21, 2026

The Nigerian Education Loan Fund (NELFUND) has clarified that accessing the Federal Government’s student loan scheme is voluntary and not compulsory for students in Nigerian tertiary institutions, urging eligible applicants to make decisions based on their financial circumstances and genuine need for assistance.

The clarification follows public concern over a directive reportedly issued by the Enugu State College of Education (Technical), Enugu, requiring fresh and returning students to apply for the loan for the 2026/2027 academic session. The controversy has renewed debate over students’ rights to choose whether to borrow money to finance their education.

In a statement issued in Abuja on Wednesday, October 21, 2026, and signed by its Director of Strategic Communications, Oseyemi Oluwatuyi, NELFUND reaffirmed that the scheme was established to assist students who face financial difficulties in meeting the costs of higher education.

The agency stressed that students who can independently finance their education are under no obligation to apply for or access the facility.

NELFUND explains purpose of student loan scheme

According to the Fund, the student loan programme is designed to remove financial barriers to higher education, promote equal access to learning opportunities and prevent eligible Nigerian students from being denied education because of financial constraints.

NELFUND explained that the initiative was not created to encourage every student to borrow money, irrespective of their financial situation, but to provide support for those who genuinely need it.

The agency stated that making access to the loan compulsory for all students would contradict the fundamental purpose of the programme.

It maintained that students should be allowed to assess their financial needs and determine whether the facility is appropriate for their circumstances before applying.

“The student loan scheme is a support mechanism, not an obligation,” the Fund emphasised, according to reports of its statement.

The clarification is particularly significant for students whose parents, guardians or personal resources are sufficient to cover tuition and other educational expenses. Such students can continue their studies without taking on a loan simply because their institutions direct them to do so.

For students experiencing financial hardship, however, the scheme remains an avenue for obtaining assistance to pursue their academic ambitions.

Enugu college controversy raises questions

NELFUND’s clarification comes amid controversy surrounding a reported memorandum from the Enugu State College of Education (Technical), which allegedly directed all fresh and returning students in its Nigeria Certificate in Education and degree programmes to enrol for the Federal Government’s student loan scheme.

The memorandum, dated October 6, 2026, and reportedly signed by the institution’s Acting Registrar, Patrick Aneke, described access to the facility as compulsory for students during the 2026/2027 academic session.

The directive reportedly instructed students to visit the institution’s NELFUND desk officer to complete their applications. Academic heads and student representatives were also directed to communicate the requirement to students.

The directive triggered criticism and raised concerns about whether students should be required to enter into a borrowing arrangement regardless of their ability to pay their educational expenses.

NELFUND’s subsequent position has drawn a clear distinction between making financial assistance available and compelling students to use it.

The agency’s clarification reinforces the principle that access to financial support should be based on need rather than a blanket requirement imposed on an entire student population.

Interest-free loans still require repayment

Although the NELFUND facility is interest-free, the agency has reminded prospective beneficiaries that the loans carry repayment obligations under the provisions of the Students Loans (Access to Higher Education) Act, 2024.

This distinction is important because an interest-free loan is not the same as a grant or scholarship. Beneficiaries must understand the applicable conditions and fulfil their obligations under the law.

NELFUND has therefore urged students to study the terms and conditions of the scheme carefully before submitting applications.

Students should consider the amount of assistance they require, the educational expenses the facility is intended to cover and the applicable repayment arrangements.

The agency’s warning highlights the importance of informed financial decisions, particularly among young people who may be accessing formal credit for the first time.

For students who genuinely need assistance, the availability of an interest-free facility may help reduce immediate financial pressure and enable them to remain in school. However, the obligation to repay means that applicants should understand the long-term implications before accepting the support.

What the student loan scheme offers

The Federal Government’s student loan initiative is intended to improve access to tertiary education by providing eligible students with financial assistance for approved educational expenses.

The programme provides zero-interest loans that can cover institutional charges, while approved upkeep support is paid to the beneficiary’s designated bank account. (Student Loan Initiative website)

The application process involves registering on the official platform, submitting a student loan request and undergoing the required verification. Payments for institutional charges are made to the relevant institution, while approved upkeep payments are directed to the applicant’s account.

The scheme is intended to ease the financial burden on students and their families, particularly those who might otherwise struggle to meet the costs associated with higher education.

Nevertheless, eligibility requirements and application conditions remain important considerations. Students should consult the official portal for current requirements rather than relying solely on information circulated through social media or unofficial channels.

NELFUND urges institutions to provide accurate information

Beyond clarifying the voluntary nature of the loan, NELFUND has called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme.

The agency wants institutions to guide students who require financial assistance while ensuring that those who do not need loans understand that they are not required to apply.

This responsibility is important because institutional directives can influence students’ decisions, particularly when students fear that failing to comply could affect their academic progress.

Clear communication can help prevent misunderstandings, protect students from unnecessary borrowing and ensure that those who genuinely need support know how to access it.

NELFUND reiterated its commitment to ensuring that financial hardship does not prevent eligible Nigerians from pursuing their educational aspirations.

Conclusion

NELFUND’s latest clarification sends a clear message to Nigerian tertiary students: the student loan scheme is an option for eligible students who need financial assistance, not a compulsory condition for pursuing higher education.

Students who need support are encouraged to explore the facility and understand its terms before applying, while those who can finance their education independently are free to decline it.

As the Federal Government continues efforts to widen access to higher education, the effectiveness of the scheme will depend not only on making funds available but also on ensuring that students understand their rights, responsibilities and available choices.

For prospective applicants, the essential message is to make an informed decision based on genuine financial need and to seek guidance through official NELFUND channels before accepting a loan.