NELFUND says no student has to take its loan after an Enugu college memo

The Nigerian Education Loan Fund (NELFUND) said on Wednesday, October 21, 2026, that taking the NELFUND student loan is voluntary and that students who don’t need financial help have no obligation to apply. The statement, signed in Abuja by its Director of Strategic Communications, Oseyemi Oluwatuyi, followed a memo from Enugu State College of Education (Technical), Enugu, known as ESCET, which told its NCE and degree students that applying for the loan was compulsory for the 2026/2027 session.

That puts the decision back with you and your family, based on what you can actually afford. The memo, dated October 6 and attributed to the college’s acting registrar, directed fresh and continuing students to visit the school’s NELFUND desk officer to apply, and asked deans, heads of department and the Students’ Union Government to pass the instruction on. It circulated widely online and drew strong criticism before the Fund responded.

Why the Fund doesn’t want every student borrowing

NELFUND said making the loan compulsory for all students, whatever their financial situation, would go against the reason the scheme exists, which is to stop eligible students being shut out of higher education for lack of money. “Students who do not require financial support are under no obligation to apply for or access the facility,” the statement said. It added that the Fund’s aim isn’t to get every student to borrow, and that the choice to apply should rest on each student’s own circumstances.

The Fund also asked schools, student leaders and other stakeholders to share accurate information about the scheme and to guide students who genuinely need support. That request lands at a time when many campuses run NELFUND desks to help with applications, and the line between helping students apply and pressuring them to apply is exactly what the ESCET memo crossed.

Interest-free still means you pay it back

NELFUND repeated that the loan carries no interest, but it was just as clear that “like every financial facility, it comes with repayment obligations” under the Student Loans Act. A loan that covers four or five years of fees and upkeep becomes a debt you carry into working life, so it’s worth knowing roughly how much you’d owe by graduation before you accept it.

If you do need it, the money is real and it’s flowing. The Fund has disbursed ₦372.62 billion so far, with upkeep payments driving much of the recent growth, and our guide to the 2026/2027 application window covers the deadline and the data mismatches that hold many applications up. Apply through the official portal at nelf.gov.ng yourself, so you see every term before you agree to it.

If your school says the loan is compulsory

NELFUND’s statement is the clearest answer you can point to. If a department, hall or desk officer tells you the loan is a condition for registration or clearance, ask for the instruction in writing and raise it with your student union, which the Fund has specifically asked to help spread accurate information. You can also reach NELFUND through the support channel listed on its website.

We couldn’t find a public statement from ESCET withdrawing its memo by Wednesday afternoon, so students there should watch for an official update from the college before visiting the desk officer. Whatever the school does next, your registration for the 2026/2027 session shouldn’t depend on signing up for a loan you’ve decided you don’t need.