“NELFUND Tightens Oversight as It Moves Against Institutions Withholding Student Loan Refunds”

“NELFUND Tightens Oversight as It Moves Against Institutions Withholding Student Loan Refunds”

The Nigerian Education Loan Fund (NELFUND) has intensified efforts to address complaints against tertiary institutions accused of withholding student loan refunds and imposing unauthorized fee increases, reaffirming its commitment to ensuring beneficiaries receive the full value of the federal government’s student loan scheme.

The agency disclosed that it is investigating reports that some higher institutions failed to refund tuition payments made by students before NELFUND disbursed their approved loans. According to the Fund, institutions found to have withheld refunds or engaged in practices that undermine the objectives of the student loan programme will face appropriate sanctions.

NELFUND emphasized that students who had already paid their tuition before their loans were processed are entitled to receive refunds once the loan payments have been transferred directly to their institutions. The agency warned that retaining such funds violates the principles of transparency, accountability, and fairness that underpin the student loan initiative.

The Fund also expressed concern over allegations that some institutions have increased tuition and related charges after the introduction of the loan scheme. It stated that it is working closely with relevant education authorities and regulatory bodies to investigate these claims and ensure that students are not subjected to unjustified financial burdens.

NELFUND urged affected students to report any cases of withheld refunds, excessive charges, or irregularities through its official complaint channels. It reiterated that safeguarding students’ interests remains a top priority and that every verified complaint will receive prompt attention.

The student loan programme, introduced by the Federal Government, is designed to expand access to higher education by providing eligible Nigerian students with interest free loans for tuition and other approved educational expenses. The initiative is expected to reduce financial barriers to tertiary education while promoting equal opportunities for students across the country.

As the implementation of the scheme continues, NELFUND said it will strengthen monitoring mechanisms and collaborate with institutions to ensure compliance with established guidelines. The agency maintained that transparency and accountability are essential to sustaining public confidence in the programme and achieving its long-term educational objectives.