Student loan refunds: NELFUND moves against defaulting institutions

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The Nigerian Education Loan Fund has moved against tertiary institutions accused of withholding refunds due to students under the Federal Government’s student loan scheme, warning that it is engaging affected schools and relevant authorities to ensure compliance.

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NELFUND, in a public notice issued on Monday, also condemned reports of arbitrary increases in tuition and other institutional charges, describing such practices as contrary to the objectives of the student loan programme.

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NELFUND said some institutions had delayed or outrightly refused to refund students who had paid their tuition before the Fund subsequently disbursed the same fees to the schools on their behalf.

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“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.

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It said the Student Loan Scheme was designed to remove financial barriers to higher education and should not become an avenue for placing additional financial burdens on students.

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“The Student Loan Scheme, an initiative of the administration of President Bola Ahmed Tinubu, was established to remove financial barriers to higher education, not to create additional burdens for Nigerian students,” the Fund stated.

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To address the issue, NELFUND said it had commenced engagements with the affected institutions and relevant authorities to ensure that eligible students receive their refunds and that institutional charges remain fair and transparent.

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“NELFUND is engaging the affected institutions and relevant authorities to ensure that due refunds are made to eligible students and that institutional charges remain fair, transparent, and consistent with the objectives of the Scheme,” it said.

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The Fund reiterated its commitment to protecting students and preserving public confidence in what it described as a landmark national intervention.

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“NELFUND remains committed to protecting the interests of students and preserving the integrity of this landmark national intervention,” the statement added.

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The latest intervention follows growing complaints by beneficiaries of the student loan scheme that some tertiary institutions have failed to refund tuition fees they paid before NELFUND settled the same obligations directly with the schools.

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Students have also raised concerns over delays in processing the refunds, despite confirmations that the institutions had received payments from the Fund.

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The student loan scheme, a flagship education financing initiative of President Bola Tinubu’s administration, was introduced to improve access to higher education by providing interest-free loans to eligible students in public tertiary institutions.

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Under the programme, NELFUND pays tuition directly to institutions while approved upkeep allowances are paid into beneficiaries’ bank accounts.

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Since disbursements began, the Fund has consistently warned institutions that students who paid their fees before NELFUND’s intervention are entitled to full refunds once the Fund remits the tuition on their behalf.

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Monday’s notice signals a tougher enforcement stance by the agency as it seeks to prevent abuses that could undermine confidence in the programme.

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