The Nigerian Education Loan Fund (NELFUND) has said the Federal Government’s student loan scheme is not compulsory for all students, stressing that only those who genuinely need financial support are expected to apply.
The Fund said the initiative was introduced to help eligible Nigerian students overcome financial challenges and should not be seen as an obligation for every student in tertiary institutions.
NELFUND made the clarification in a statement issued on Wednesday in Abuja by its Director of Strategic Communications, Mrs Oseyemi Oluwatuyi.
According to the agency, the scheme is aimed at removing financial barriers to higher education, promoting equal access to education and ensuring that no qualified student is denied the opportunity to study because of a lack of funds.
It explained that students should decide whether to apply for the loan based on their financial situation and actual need for 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 statement said.
It added: “NELFUND’s 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 student loan scheme is a support mechanism, not an obligation.”
The agency also noted that the student loan is interest-free but reminded beneficiaries that repayment is mandatory in line with the provisions of the Student Loans Act.
NELFUND urged students to understand the conditions attached to the loan before applying, saying informed decisions would help them make the best use of the scheme.
The Fund also called on tertiary institutions, student unions and other stakeholders to educate students about the programme and ensure that accurate information reaches those who need financial assistance.
The student loan scheme is one of the Federal Government’s efforts to improve access to higher education by supporting students whose education may be threatened by financial hardship.