NELFUND cracks down on schools withholding student loan refunds

The Nigerian Education Loan Fund (NELFUND) has commenced engagements with tertiary institutions accused of delaying or refusing to refund students whose tuition fees had already been paid before the disbursement of student loans, warning against practices that undermine the objectives of the federal government’s student loan scheme.

The Fund also raised concerns over reports of arbitrary increases in tuition fees and other institutional charges by some tertiary institutions, describing the development as contrary to the spirit of the initiative.

In a statement issued on Monday and signed by Oseyemi Oluwatuyi, director of strategic communications, NELFUND said it had received reports that some institutions were withholding refunds due to students who had independently paid their tuition before the Fund released payments on their behalf.

According to the agency, the Student Loan Scheme, an initiative of the administration of President Bola Ahmed Tinubu, was established to remove financial barriers to higher education and should not become a source of additional hardship for beneficiaries.

“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,” the statement said.

The Fund stressed that institutions participating in the programme are expected to uphold transparency and accountability in the management of loan disbursements, particularly where students are entitled to reimbursement following payments made before NELFUND’s intervention.

It reaffirmed its commitment to safeguarding the interests of Nigerian students and preserving the credibility of the student loan scheme, which is designed to improve access to tertiary education by reducing financial constraints.

NELFUND urged affected students to remain confident in the process as it works with relevant authorities to resolve outstanding refund issues and ensure compliance by participating institutions.