NELFUND Loan: Can Schools Force Students to Borrow Money to Write Exams?
The Nigerian Education Loan Fund says student loans are voluntary, following reports that an Enugu college threatened to prevent students who refused to apply from writing examinations.
Can a Nigerian tertiary institution force students to take a loan before allowing them to write examinations? That question has emerged following a controversial directive by the Enugu State College of Education (Technical), Enugu.
The college reportedly directed all National Certificate in Education (NCE) and degree students to apply for the Federal Government’s Nigerian Education Loan Fund (NELFUND) scheme for the 2026/2027 academic session.
According to a report by Sahara Reporters, the directive also raised concerns about students who could be prevented from writing examinations if they failed to provide evidence of registration.
However, NELFUND has since clarified that students are not required to borrow money to pursue their education.
Here are five things students should know about the controversy.
1. What is NELFUND?
NELFUND is the Federal Government agency responsible for administering student loans under the Students Loans (Access to Higher Education) Act.
The scheme provides financial assistance to eligible Nigerian students to help cover institutional fees and, where applicable, upkeep expenses.
According to the official NELFUND website, the initiative aims to reduce financial barriers to higher education and help students continue their studies despite financial difficulties.
However, receiving a loan comes with repayment obligations. Students should therefore understand the terms before applying.
2. Is the NELFUND loan compulsory?
No. NELFUND clarified on Wednesday, October 21, that accessing the loan is voluntary.
In a statement reported by Punch Newspapers, the fund explained that students who can afford their educational expenses do not have to apply.
NELFUND also warned that making the scheme compulsory for every student would contradict its purpose.
The fund described the scheme as a support mechanism rather than an obligation. It urged tertiary institutions to provide accurate information and guide students who genuinely need financial assistance.
Read NELFUND’s clarification on voluntary student loans.
3. Can a school stop students from writing examinations for refusing the loan?
NELFUND’s clarification establishes that students are not obliged to take its loan. However, that statement alone does not conclusively determine every legal question surrounding examination clearance.
The reported directive from the Enugu college raises a separate question: whether the institution has a lawful basis to make loan registration a condition for writing examinations.
A definitive answer requires examining the applicable law, the institution’s regulations and any relevant directives from the authorities.
As of this report, the available information does not establish a legal ruling specifically addressing the college’s reported examination threat.
Students should therefore distinguish between the college’s reported directive and NELFUND’s stated position on voluntary borrowing.
4. What should students consider before taking the loan?
Students who need financial assistance should assess their circumstances before applying.
Although the facility is interest-free, beneficiaries are still expected to repay the money under the applicable terms.
The NELFUND loan terms and conditions explain beneficiaries’ obligations, including provisions concerning repayment after employment and other requirements.
Students should review these conditions carefully and ensure that the information on their applications is accurate.
They should also confirm their institution’s approved fees before accepting a loan.
5. What should students do if their school insists on compulsory registration?
Students who face pressure to apply should request the directive in writing and seek clarification from their institution’s management.
They can also contact NELFUND through its official channels to establish whether the instruction reflects the fund’s policy.
Where a student is threatened with exclusion from examinations, keeping copies of relevant notices and communications may help when seeking assistance from the appropriate education authorities.
Ultimately, the purpose of student loans is to help eligible students overcome financial barriers to education. NELFUND’s position is clear: students should not be compelled to borrow money simply because the facility is available.