The Nigerian Education Loan Fund (NELFUND) has launched a crackdown on tertiary institutions accused of withholding tuition fee refunds owed to students under the Federal Government’s student loan scheme, warning that it is engaging affected schools and relevant authorities to ensure full compliance.
The Fund also raised concerns over reports that some institutions have arbitrarily increased tuition fees and other charges, describing such actions as contrary to the objectives of the student loan programme introduced by the Federal Government.
In a public notice issued on Monday, NELFUND said it had received several complaints that some universities, polytechnics and colleges had either delayed or refused to refund students who had earlier paid their tuition fees before the Fund later settled the same fees directly with the institutions.
According to the agency, students who paid their tuition before NELFUND’s intervention are entitled to full refunds once the Fund pays 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.
NELFUND stressed that the student loan scheme was established to remove financial barriers preventing many Nigerians from accessing higher education and should not be turned into an avenue for 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.
To address the growing concerns, NELFUND said it has begun discussions with the affected institutions as well as relevant government authorities to ensure that all eligible students receive the refunds due to them.
The agency also said it would ensure that tuition fees and other institutional charges remain transparent, fair and consistent with the objectives of the program.
“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 reiterated its commitment to protecting the interests of students while safeguarding the credibility of the student loan program.
“NELFUND remains committed to protecting the interests of students and preserving the integrity of this landmark national intervention,” it said.
The latest warning follows increasing complaints from beneficiaries across several public tertiary institutions who claimed they had not received refunds despite confirmation that NELFUND had already paid their tuition fees directly to their schools.
Some affected students have also complained about delays in processing refunds, saying they were forced to continue making repeated enquiries even after their institutions acknowledged receiving payment from the Fund.
The student loan program is one of the flagship education initiatives of the President Bola Tinubu administration. It was introduced to improve access to higher education by providing interest-free loans to eligible students in federal and state-owned tertiary institutions.
Under the scheme, NELFUND pays approved tuition fees directly to the institutions, while beneficiaries also receive upkeep allowances paid into their personal bank accounts to support their living expenses during their studies.
The program was established following the enactment of the Student Loans (Access to Higher Education) Act, which was later amended to expand access and strengthen the implementation framework.
After several years of debate over how to finance higher education without placing excessive financial pressure on students and their families, the scheme officially commenced disbursement in 2024.
Thousands of students across universities, polytechnics and colleges of education have since benefited from the initiative.
However, the implementation has also exposed challenges, particularly regarding the processing of tuition payments and the refund of students who had already paid before NELFUND settled the same fees.
The Fund has repeatedly reminded institutions that once tuition fees are paid directly by NELFUND, any student who had previously paid for the same academic session must be refunded in full.
There have also been concerns over reports that some institutions increased tuition and other charges after the commencement of the loan scheme, raising fears that the program could be exploited if proper oversight is not maintained.
NELFUND’s latest intervention signals a tougher enforcement approach aimed at ensuring institutions comply fully with the guidelines governing the student loan program.
The agency did not disclose the names of the institutions under investigation but indicated that engagements with affected schools were already underway.
The Fund maintained that the success of the initiative depends not only on timely disbursement of loans but also on strict compliance by participating institutions with all operational guidelines.
It urged school authorities to cooperate fully with ongoing engagements and ensure that students receive every benefit due to them without unnecessary delays.
For many Nigerian families struggling with rising tuition costs and the increasing cost of living, the student loan scheme has become an important source of financial support.