The Nigerian Education Loan Fund (NELFUND) has declared that accessing its student loan scheme is voluntary, warning tertiary institutions against making it compulsory for students.

This followed the controversy surrounding the directive by the Enugu State College of Education (Technical), Enugu, mandating all students to apply for the facility.

The Fund, in a statement issued on Wednesday in Abuja, said the scheme was designed to support students who genuinely needed financial assistance to pursue their education, stressing that students who could afford their educational expenses were under no obligation to borrow.

The clarification comes amid outrage over an internal memorandum by the Enugu State College of Education (Technical), which reportedly directed all fresh and returning students at both Nigeria Certificate in Education (NCE) and degree levels to apply for and access the Federal Government’s student loan for the 2026/2027 academic session.

The memo, dated October 6, 2026, and signed by the Acting Registrar, Patrick Aneke, reportedly warned that accessing the loan was compulsory for every student.

It directed students to visit the office of the college’s NELFUND Desk Officer, Dr Rufina Agu, to apply for the facility, while Deans, Directors, Heads of Department and the Students’ Union Government were instructed to communicate the directive to students.

The controversy has raised concerns about whether institutions can compel students to access a loan established to provide financial relief to those unable to meet the cost of higher education.

In its statement titled ‘NELFUND Clarifies: Student Loan Access Is Voluntary, Not Compulsory’, the Fund’s Director, Strategic Communications, Oseyemi Oluwatuyi
reaffirmed the agency’s commitment to ensuring that financial hardship did not prevent eligible Nigerians from pursuing tertiary education.

She explained that the scheme was established to remove financial barriers, promote equal access to learning opportunities and ensure that no eligible student was denied education because of financial constraints.

“Consequently, the decision to apply for and access the loan should be based on an individual student’s financial circumstances and genuine need for assistance. Students who do not require financial support are under no obligation to apply for or access the facility,” the Spokesperson said.

NELFUND stressed that compelling all students to borrow, regardless of their financial circumstances, would contradict the fundamental purpose of the scheme.

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

The Fund 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.”

It also reminded prospective beneficiaries that although the loans were interest-free, they carried repayment obligations under the provisions of the Student Loans Act.

It advised students to understand the scheme’s terms and conditions and make informed decisions before applying.

The Fund urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the facility and guide students appropriately, particularly those who needed financial assistance to continue their education.

NELFUND said it remained committed to ensuring that financial difficulties did not stand in the way of Nigerian students’ educational aspirations.

The student loan scheme, introduced by the Federal Government under President Bola Tinubu, is intended to provide eligible students with financial assistance for tuition and other approved educational expenses.

NELFUND has consistently positioned the initiative as a means of expanding access to higher education by easing the financial burden on students and their families.