The Nigerian Education Loan Fund (NELFUND) has clarified that student loans are not compulsory for students in Nigerian tertiary institutions, stressing that only those who need financial assistance should apply for the facility.
The Fund explained that the interest-free loan scheme was introduced to help students who struggle to pay for their education, not to force every student to borrow money to continue their studies.
In a clarification issued on Wednesday, October 21, 2026, NELFUND said applying for the loan was a personal decision that should depend on each student's financial situation and need for support.
The clarification comes amid concerns over the need for students, tertiary institutions and other stakeholders to properly understand the purpose of the Federal Government's student loan programme.
NELFUND stated that the initiative was created to remove financial barriers to higher education and ensure that qualified Nigerian students do not abandon their academic pursuits because they cannot afford the cost of schooling.
However, the Fund warned against any practice or interpretation of the programme that could give students the impression that obtaining a loan was a requirement for studying at a university, polytechnic or other tertiary institution.
It explained that making the facility compulsory for students who could afford their educational expenses would go against the objectives of the scheme.
According to the Fund, the programme is intended to provide financial support to eligible students who genuinely need help paying for their education, rather than encourage everyone to take on debt.
NELFUND added that students who could independently cover their school expenses were free to continue their education without applying for the loan.
The Fund also reminded prospective applicants that although the facility does not attract interest, beneficiaries are still required to repay the money in line with the provisions of the Student Loans Act.
It urged students to carefully study the terms and conditions of the scheme before applying, noting that understanding the repayment requirements would help them make informed decisions about whether to access the facility.
NELFUND maintained that the loan programme remained an important government intervention aimed at expanding access to higher education and reducing the number of qualified students who face difficulties pursuing their academic goals because of financial challenges.
The Fund said its priority was to ensure that students who genuinely needed financial assistance could obtain the support required to continue their education.
It also called on tertiary institutions, student leaders and other stakeholders to provide students with correct information about the programme and help them understand how it works.
According to NELFUND, institutions must avoid giving students misleading information or creating the impression that applying for the loan is a compulsory condition for gaining access to education.
The Fund reiterated its commitment to making the facility available to eligible Nigerian students who require financial support while ensuring that those who do not need it are not pressured into borrowing.
The clarification was contained in a statement signed by NELFUND's Director of Strategic Communications, Oseyemi Oluwatuyi.
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