…Says Students Who Can Afford Their Education Need Not Apply, Reminds Beneficiaries of Repayment Obligations
The Nigerian Education Loan Fund (NELFUND) has cleared the air on its student loan initiative, declaring that the scheme is voluntary and that no student is compelled to take a loan to finance their education.
The Fund stressed that the programme was established to support eligible Nigerian students facing financial difficulties, not to make borrowing compulsory for everyone enrolled in a tertiary institution.
NELFUND made this clarification in a statement issued in Abuja on Wednesday, October 21, 2026, and signed by its Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi.
According to the Fund, students who can independently meet the cost of their education are under no obligation to apply for or access the interest-free facility.
It explained that the initiative seeks to break financial barriers to higher education, expand access to learning opportunities and ensure that a lack of funds does not prevent eligible Nigerians from pursuing their academic dreams.
NELFUND maintained that the decision to apply should be guided by each student's financial circumstances and genuine need for assistance, adding that compelling all students to borrow would run contrary to the scheme's core purpose.
“The objective is not to encourage every student to borrow money, but to ensure that those who genuinely require financial assistance have access to the facility,” the Fund stated.
The Fund emphasised that the student loan scheme is a support system for those who need financial relief, rather than an obligation for the entire student population.
However, NELFUND reminded prospective applicants that **interest-free does not mean repayment-free**. While beneficiaries are not charged interest on the loans, they are required to repay the funds in accordance with the provisions of the Student Loans Act.
It consequently urged students to understand the scheme's terms and conditions and make informed decisions before submitting applications.
The Fund also called on tertiary institutions, student union leaders and other stakeholders to provide accurate information about the programme, particularly to students experiencing financial hardship who may benefit from the opportunity.
NELFUND reaffirmed its commitment to expanding access to higher education by helping eligible students overcome financial constraints and pursue their educational aspirations.
The clarification sends a clear message to students and parents: NELFUND is an opportunity for those who need financial support, not a compulsory borrowing scheme for every student.