NELFUND cracks down on institutions withholding student loan refunds
The Nigerian Education Loan Fund (NELFUND) has begun moves to sanction tertiary institutions accused of withholding tuition fee refunds due to students under the Federal Government’s student loan scheme.
In a public notice issued on Monday, the Fund warned that it was engaging affected institutions and relevant authorities to ensure compliance, while also condemning reports of arbitrary increases in tuition and other institutional charges.
NELFUND said some institutions had either delayed or refused to refund students who had paid their tuition fees before the Fund later settled the same fees directly with the schools.
“The Nigerian Education Loan Fund has noted with concern reports of some tertiary institutions delaying or refusing to refund students whose tuition fees had already been paid before NELFUND disbursements, as well as arbitrary increases in tuition and other institutional charges,” the statement read.
It stressed that the student loan scheme, introduced by the administration of President Bola Ahmed Tinubu, was designed to remove financial barriers to higher education and should not become a burden on beneficiaries.
“The Student Loan Scheme was established to remove financial barriers to higher education, not to create additional burdens for Nigerian students,” the Fund stated.
NELFUND said it had commenced engagements with the affected institutions and relevant authorities to ensure that eligible students receive their refunds promptly and that institutional charges remain fair, transparent and consistent with the objectives of the scheme.
The Fund reiterated its commitment to protecting the interests of students and preserving public confidence in what it described as a landmark national intervention.
The latest action follows growing complaints from beneficiaries that some tertiary institutions have failed to refund tuition fees paid by students before NELFUND subsequently remitted the same fees directly to the institutions. Many students have also reported delays in receiving the refunds despite confirmation that the schools had received payments from the Fund.
The student loan scheme, one of the flagship education initiatives of the Tinubu administration, was introduced to improve access to higher education through interest-free loans for eligible students in public tertiary institutions. Under the programme, NELFUND pays tuition fees directly to institutions, while approved upkeep allowances are paid into beneficiaries’ bank accounts.
Since the commencement of disbursements, the Fund has repeatedly reminded institutions that students who paid their tuition before NELFUND’s intervention are entitled to full refunds once the Fund settles the fees on their behalf.
Monday’s notice signals a tougher enforcement stance by the agency as it seeks to curb abuses capable of undermining confidence in the student loan programme.