NELFUND Moves Against Schools Withholding Student Loan Refunds

The Nigerian Education Loan Fund (NELFUND) has begun taking action against tertiary institutions accused of withholding tuition refunds owed to students under the Federal Government's student loan programme. In a public notice issued on Monday, the agency expressed concern over reports that some institutions have either delayed or refused to refund students who had already paid their tuition fees before NELFUND later settled the same fees directly with the schools. The Fund also raised concerns over alleged arbitrary increases in tuition and other institutional charges, warning that such practices undermine the purpose of the student loan scheme. According to NELFUND, the initiative was created to remove financial barriers to higher education, not to place additional financial pressure on students. To address the issue, the agency said it has commenced engagements with the affected institutions and relevant government authorities to ensure that eligible students receive their refunds promptly and that school charges remain fair, transparent and in line with the objectives of the programme. NELFUND reaffirmed its commitment to protecting students' interests and preserving public confidence in the scheme, describing it as a landmark intervention aimed at expanding access to higher education.

The latest move follows growing complaints from beneficiaries who claimed that despite NELFUND paying their tuition fees directly to institutions, some schools have failed to refund the amounts students initially paid from their own pockets. Others have also reported prolonged delays in receiving the refunds. Under the Federal Government's student loan programme, tuition fees are paid directly to approved public tertiary institutions, while successful applicants receive upkeep allowances in their personal bank accounts. NELFUND has repeatedly reminded institutions that students who paid their tuition before the Fund's intervention are entitled to full refunds once the agency settles the fees on their behalf. Monday's warning signals a tougher enforcement approach as the agency moves to prevent practices capable of eroding trust in the student loan programme.

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