Student loans voluntary, not compulsory, says NELFUND

The Nigerian Education Loan Fund (NELFUND) has clarified that accessing its interest-free student loan scheme is voluntary, insisting that students who do not need financial assistance are under no obligation to apply.

The Fund said the scheme was designed to support eligible Nigerian students facing financial difficulties, rather than compel every student in tertiary institutions to borrow money for their education.

NELFUND made the clarification in a statement signed by its Director of Strategic Communications, Mrs Oseyemi Oluwatuyi, in Abuja.

It further explained that the loan scheme was established to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that no eligible student is denied education because of financial constraints.

According to the Fund, students should decide whether to apply for the facility based on their individual financial circumstances and genuine need for assistance. “The student loan scheme is a support mechanism, not an obligation,” the statement said.

NELFUND stressed that making access to the loan compulsory for all students, irrespective of their financial circumstances, would contradict the fundamental purpose of the scheme.

It said its objective was not to encourage every student to borrow, but to ensure that eligible Nigerians who genuinely require financial assistance have the opportunity to access the facility.

The Fund also reminded prospective beneficiaries that although the loans are interest-free, they carry repayment obligations in accordance with the provisions of the Student Loans Act.

It, therefore, urged students to familiarise themselves with the terms and conditions of the scheme and make informed decisions before submitting their applications.

NELFUND further called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the loan scheme and guide students appropriately, particularly those who require financial support to continue their education.

The Fund reaffirmed its commitment to ensuring that financial hardship does not prevent eligible Nigerian students from pursuing their educational aspirations.