The Nigerian Education Loan Fund has clarified that student loans are voluntary and not compulsory for tertiary institution students.

The fund urged students to apply only when they genuinely need financial support to continue their education.

The statement was issued on Wednesday by NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, in Abuja.

The fund explained that the scheme was created to remove financial barriers to higher education and ensure that eligible students are not denied opportunities because of money issues.

NELFUND stressed that students who can afford their school expenses are under no obligation to take the loans. Making the facility compulsory for everyone, regardless of financial need, would go against the purpose of the programme, which is meant to help those who require assistance rather than encourage unnecessary borrowing.

The fund described the student loan scheme as a support mechanism, not an obligation. It called on tertiary institutions, student leaders and other stakeholders to give accurate information about the scheme and guide students who need help on how to access it.

NELFUND also noted that the loans are interest-free but come with repayment obligations under the Student Loans Act. It advised prospective applicants to fully understand the terms and conditions before applying, while reaffirming its goal of ensuring financial hardship does not stop eligible Nigerian students from pursuing higher education.