NELFUND Warns Tertiary Institutions Over Withheld Student Loan Refunds, Tuition Hikes

ABUJA, Nigeria — The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions accused of withholding tuition refunds due to students under the Federal Government’s student loan scheme, saying it is engaging affected schools and relevant authorities to ensure compliance.

In a public notice issued on Monday, the Fund also condemned reports of arbitrary increases in tuition and other institutional charges, describing such practices as inconsistent with the objectives of the student loan programme.

NELFUND said it had received reports that some tertiary institutions delayed or refused to refund students who had paid their tuition fees before the Fund subsequently disbursed the same fees directly to the institutions on their behalf.

“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.

The agency stressed that the student loan scheme was created to remove financial barriers to higher education and should not become a means of imposing additional financial burdens on students.

“The Student Loan Scheme, an initiative of the administration of President Bola Ahmed Tinubu, was established to remove financial barriers to higher education, not to create additional burdens for Nigerian students,” the Fund stated.

NELFUND said it had begun discussions with the affected institutions and relevant authorities to ensure that eligible students receive their refunds promptly and that institutional charges remain fair and transparent.

“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 added.

The Fund reaffirmed its commitment to protecting the interests of students and safeguarding public confidence in the student loan initiative.

“NELFUND remains committed to protecting the interests of students and preserving the integrity of this landmark national intervention,” it said.

The latest intervention follows growing complaints from beneficiaries of the scheme that some tertiary institutions have failed to refund tuition fees paid before NELFUND settled the same obligations directly with the schools. Students have also raised concerns over delays in processing refunds despite confirmations that the institutions had received payments from the Fund.

The student loan scheme, one of the flagship education financing initiatives of the administration of Bola Ahmed Tinubu, was introduced to improve access to higher education by providing interest-free loans to eligible students in public tertiary institutions.

Under the programme, NELFUND pays tuition fees directly to institutions, while approved upkeep allowances are paid into beneficiaries’ bank accounts.

Since disbursements began, the Fund has consistently maintained that students who paid their tuition fees before NELFUND’s intervention are entitled to full refunds once the agency remits the tuition to their institutions. Monday’s notice signals a tougher enforcement stance as the Fund seeks to prevent practices that could undermine confidence in the programme.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.