Student loan: NELFUND targets schools withholding tuition 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 scheme.

In a public notice issued on Monday, the Fund said it had received complaints that some institutions were refusing or delaying refunds for students who had already paid their tuition fees before NELFUND subsequently settled the same fees directly with the schools.

NELFUND also frowned at arbitrary increases in tuition and other institutional charges, warning that such practices undermine the objectives of the Federal Government’s student loan programme.

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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 said.

According to the Fund, the student loan initiative, introduced by the administration of President Bola Tinubu, was created to remove financial barriers to higher education, not to impose additional burdens on students.

The agency said it had begun discussions with the affected institutions and other relevant authorities to ensure that eligible students receive the refunds due to them and that school fees and related charges remain transparent and reasonable.

“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 stated.

The agency reaffirmed its commitment to protecting students’ interests and sustaining public confidence in the student loan programme.

The move follows complaints from beneficiaries who alleged that some tertiary institutions had failed to refund tuition fees they paid before NELFUND made direct payments on their behalf. Others also reported prolonged delays in receiving refunds despite confirmation that the institutions had already received the funds from the agency.