NELFUND WARNS UNIVERSITIES AGAINST MAKING STUDENT LOANS COMPULSORY

The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against compelling students to apply for the Federal Government’s student loan scheme, insisting that access to the facility is voluntary and should depend on individual financial needs.

The warning follows controversy over a directive issued by the Enugu State College of Education (Technical), Enugu, which reportedly instructed all fresh and returning students in its Nigeria Certificate in Education (NCE) and degree programmes to apply for the loan for the 2026/2027 academic session.

The college’s internal memorandum, dated October 6, 2026, and signed by its Acting Registrar, Patrick Aneke, described enrolment in the scheme as compulsory. It directed students to visit the institution’s NELFUND Desk Officer, Dr Rufina Agu, to complete their applications.

The directive also instructed deans, directors, heads of department , and the Students’ Union Government to communicate the requirement to students, prompting concerns about whether students could be required to take a loan regardless of their financial circumstances.

In a statement issued on Wednesday, October 21, NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, said students should decide whether to apply based on their genuine need for financial assistance.

“Making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose,” the fund said.

NELFUND explained that the programme was established to remove financial barriers to higher education and ensure that eligible students who could not afford educational expenses had access to support.

It stressed that the objective was not to encourage every student to borrow but to make assistance available to those who needed it to continue their education.

“The student loan scheme is a support mechanism, not an obligation,” the fund said.

The agency also reminded prospective applicants that although the loans are interest-free, beneficiaries are required to repay them in accordance with the provisions of the Students Loans (Access to Higher Education) Act.

It advised students to familiarise themselves with the terms and conditions of the scheme and make informed decisions before applying.

NELFUND urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students who genuinely require financial assistance, rather than presenting the loan as a compulsory condition for studying.

The Federal Government introduced the student loan scheme to help eligible Nigerians meet approved educational expenses, including institutional charges and upkeep. Applications are processed through NELFUND’s official platform.

The fund reaffirmed its commitment to ensuring that financial difficulties do not prevent eligible students from pursuing higher education, stressing that the scheme should remain accessible to those who need support without placing an obligation on students who can meet their educational costs independently.