NELFUND Moves Against Schools Withholding Student Loan Refunds

The Nigerian Education Loan Fund (NELFUND) has begun taking action against tertiary institutions accused of failing to refund students who paid their tuition before the Fund later settled the same fees directly with the schools.

‎

‎In a statement released on Monday, NELFUND expressed concern over reports that some institutions have either delayed or refused to return the money to affected students. The agency also criticised what it described as arbitrary increases in tuition fees and other institutional charges, warning that such actions undermine the purpose of the Federal Government's student loan initiative.

‎

‎According to the Fund, the student loan programme was introduced under President Bola Ahmed Tinubu's administration to eliminate financial obstacles preventing students from accessing higher education, not to impose additional financial burdens on beneficiaries.

‎

‎NELFUND stated that it is working closely with the affected institutions and relevant authorities to ensure that eligible students receive their refunds promptly while also ensuring that tuition and other charges remain fair and transparent.

‎

‎The agency reaffirmed its commitment to protecting students' interests and safeguarding the credibility of the student loan programme, describing it as a landmark intervention aimed at expanding access to higher education.

‎

‎The latest warning follows increasing complaints from beneficiaries who claimed they had not been refunded despite NELFUND paying their tuition fees directly to their institutions. Some students also alleged prolonged delays in receiving the refunds, even after schools confirmed receipt of the Fund's payments.

‎

‎The Federal Government's student loan scheme provides interest-free loans to eligible students in public tertiary institutions. Under the programme, NELFUND pays tuition directly to schools, while approved upkeep allowances are transferred into beneficiaries' personal bank accounts.

‎

‎Since the scheme commenced, NELFUND has repeatedly reminded institutions that students who paid their fees before the Fund's intervention are entitled to full reimbursement once tuition payments are made on their behalf. The agency's latest move signals stricter enforcement measures to prevent practices that could erode public confidence in the programme.