The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against compelling students to access the Federal Government’s student loan scheme, insisting that borrowing must be based on individual financial needs.
The warning follows controversy over a directive by the Enugu State College of Education (Technical), which reportedly instructed all fresh and returning students in its Nigeria Certificate in Education and degree programmes to apply for the loan for the 2026/2027 academic session.
In a statement issued in Abuja on Wednesday, NELFUND said the scheme was designed to support students who genuinely needed financial assistance, not to make borrowing compulsory for everyone.
The fund’s Director of Strategic Communications, Oseyemi Oluwatuyi, said students who could afford their educational expenses were under no obligation to apply.
The college’s internal memorandum, dated October 6 and signed by its Acting Registrar, Patrick Aneke, reportedly directed students to visit the institution’s NELFUND desk officer, Dr Rufina Agu, to access the facility.
It also instructed deans, directors, heads of department and the Students’ Union Government to communicate the directive to students.
The order raised concerns about whether institutions could require students to take loans established to ease the financial burden of higher education.
NELFUND said making the scheme compulsory would contradict its purpose of removing financial barriers and expanding access to tertiary education.
“The student loan scheme is a support mechanism, not an obligation,” the fund stated, adding that its objective was to ensure that eligible Nigerians who needed financial assistance could obtain it.
It said applications should be determined by each student’s financial circumstances and genuine need for support.
The fund also reminded prospective beneficiaries that although the loans were interest-free, they were subject to repayment obligations under the Student Loans Act.
It advised students to understand the terms and conditions before applying and urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme.
NELFUND said it remained committed to ensuring that financial difficulties did not prevent eligible Nigerians from pursuing higher education.
The Federal Government introduced the scheme under President Bola Tinubu to help eligible students meet tuition and other approved educational expenses.
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