NELFUND Moves Against Institutions Withholding Student Loan Refunds

The Nigerian Education Loan Fund (NELFUND) has commenced action against tertiary institutions accused of delaying or withholding tuition refunds due to students under the Federal Government's student loan scheme. The agency also condemned reports of arbitrary increases in tuition and other institutional charges by some schools.

In a statement, NELFUND said it had received complaints that certain institutions failed to refund students who had already paid their tuition fees before the Fund later settled the same fees directly with the schools. It stressed that such practices undermine the objectives of the student loan programme, which was established to ease financial barriers to higher education.

The Fund disclosed that it has begun engaging the affected institutions and relevant authorities to ensure that eligible students receive their refunds without unnecessary delays. It also said efforts are underway to ensure that tuition and other institutional charges remain fair, transparent and consistent with the goals of the scheme.

NELFUND reaffirmed its commitment to protecting the interests of students and preserving public confidence in the student loan initiative. It warned that it would not allow any action capable of exploiting beneficiaries or undermining the integrity of the programme.

The agency noted that under the student loan scheme, tuition fees are paid directly to approved tertiary institutions, while upkeep allowances are credited to beneficiaries' personal bank accounts. It maintained that students who paid their fees before NELFUND's intervention are entitled to full refunds once the Fund remits the tuition to their institutions.

The latest move follows growing complaints from beneficiaries over delayed refunds despite confirmation that their institutions had already received payments from the Fund, prompting NELFUND to adopt a stricter enforcement approach.