Students in tertiary institutions across Anambra, Ebonyi and Enugu states have blamed delayed disbursement, fear of indebtedness, uncertainty over repayment and poor awareness for the low uptake of the Nigerian Education Loan Fund (NELFUND) in the South-East.
The students urged the Federal Government to ensure prompt payment of monthly upkeep allowances and intensify awareness campaigns through tertiary institutions and students’ unions.
NELFUND is the Federal Government’s flagship student loan scheme, offering interest-free loans to eligible students in public tertiary institutions. Under the programme, tuition fees are paid directly to institutions, while beneficiaries receive monthly upkeep allowances in their bank accounts.
At the University of Nigeria, Enugu Campus (UNEC), Students’ Union Government (SUG) President, Bethel Okolo, said many students had been discouraged by delays in processing applications.
According to him, some applicants were forced to pay their school fees before examinations because their loans were not disbursed on time.
“You apply, but the money doesn’t come on time. Exams catch up with you and you are required to pay your school fees. If you have to pay first and wait for a refund later, many students begin to question the essence of applying,” he said.
Okolo also cited fear of borrowing and uncertainty over future repayment as reasons many students had yet to embrace the scheme.
Despite his reservations, he described NELFUND as a laudable initiative capable of preventing financially challenged students from dropping out of school and encouraged indigent students to take advantage of the programme.
Similarly, SUG President of the State University of Medical and Applied Sciences (SUMAS), Igbo-Eno, Cletus Ikeuwa, said irregular payment of monthly upkeep allowances discouraged participation despite the benefits of the scheme.
“The upkeep allowance has only been paid three times. When students are told it will come every month and it becomes irregular, it discourages them,” he said.
Ikeuwa urged the Federal Government to ensure consistent payment of stipends and work more closely with students’ unions to improve awareness of the programme.
At Enugu State University of Science and Technology (ESUT), SUG President Chizaram Nwodo said the institution had recorded improved participation due to management’s efforts to promote the programme.
She, however, lamented the suspension of monthly upkeep allowances since around May, noting that many students depended on the payments.
Nwodo disclosed that about 2,828 ESUT students had applied for the loan, describing the figure as low compared to the university’s population of more than 20,000 students.
She identified fear of loans, difficulties navigating the application portal and poor awareness as the major barriers to participation.
A parent, Lawrence Njoku, said his son had been unable to apply because he was yet to attain the age required to obtain a Bank Verification Number (BVN), a mandatory requirement for the application.
Njoku described NELFUND as a welcome intervention and urged the Federal Government to extend the scheme to students in private tertiary institutions.
Special Assistant to Enugu State Governor Peter Mbah on Youth and Student Affairs, Prisca Okeke, attributed the low enrolment in the South-East partly to cultural attitudes toward borrowing.
She said many people in the region preferred self-reliance and were reluctant to embrace loan schemes because they viewed borrowing as inconsistent with their values.
The Vice-Chancellor of the University of Nigeria, Nsukka (UNN), Prof. Simon Ortuanya, also expressed concern over the low participation of South-East students, revealing that only about 7,201 UNN students currently benefited from NELFUND.
He said statistics presented during a recent meeting involving Governor Peter Mbah, NELFUND Managing Director Akintunde Sawyerr and heads of higher institutions in Enugu showed that the total number of beneficiaries across the South-East was lower than the figure recorded in a single North-East state.
In Anambra State, students of Nnamdi Azikiwe University (NAU), Chukwuemeka Odumegwu Ojukwu University (COOU) and Federal Polytechnic, Oko, cited poor awareness, fear of indebtedness, misconceptions about repayment, poor internet access and technical challenges as reasons for the low participation.
Some students said they lacked adequate knowledge of the application process, while others abandoned their applications after experiencing verification and document upload issues.
Parents also expressed reservations about the scheme, saying they preferred to bear the financial burden themselves rather than have their children graduate with loan obligations.
A final-year COOU student, Uchenna Nwankwo, said her parents discouraged her from applying because they believed it was better to struggle than owe money.
Similarly, Dr Chinedu Nwosu called for sustained sensitisation campaigns, saying many parents still did not understand the benefits and repayment terms of the scheme.
Meanwhile, COOU management said student participation had increased steadily following sustained awareness campaigns.
The university’s Public Relations Officer, Dr Harrison Madubueze, said verified beneficiaries were allowed to sit examinations without first paying school fees because the institution recognised NELFUND approval as proof of payment.
Also, the institution’s NELFUND Desk Officer, Dr Chisom Okafor-Maduka, said applications had risen from fewer than 263 in the 2023/2024 academic session to more than 3,000 in the 2025/2026 session, although the figure remained low compared to the university’s total enrolment.
She said poor awareness and fear of indebtedness remained major challenges but noted that growing confidence in the scheme had boosted applications despite reports of delayed disbursement.
At Nnamdi Azikiwe University, Director of Information and Public Relations, Aloysius Attah, said thousands of students had already benefited from the Federal Government’s student loan scheme, attributing the increase to sustained sensitisation by the institution.
Meanwhile, beneficiaries in Ebonyi State described NELFUND as a lifeline for indigent students despite occasional delays in disbursement.
Students of Ebonyi State University (EBSU) and Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) said the programme had eased tuition burdens and helped students from low-income families remain in school.
While acknowledging delays caused by verification and administrative processes, they urged prospective applicants to ensure their details were accurate to avoid processing setbacks.