NELFund: Some tertiary schools not notifying students of disbursed loans

The Nigerian Education Loan Fund (NELFund) has cautioned higher education institutions against withholding information about student loan disbursements from beneficiaries.

Akintunde Sawyerr, managing director of NELFund, said the fund had discovered some institutions were failing to notify students when loan payments had been made directly to the institutions for their fees.

He added that these institutions were still demanding fee payments from the affected students, causing confusion.

Sawyerr described the practice as “unethical” and a “direct violation” of NELFund’s principles.

He warned that legal action would be taken against any institution found to be engaging in such “deceptive practices”.

He emphasised that NELFund aimed to increase access to higher education by easing financial burdens on students.

Sawyerr called on all institutions to be transparent and work with the fund to ensure the loan scheme’s success.

He reassured students of NELFund’s commitment to accountability and fairness.

President Bola Tinubu enacted an initial version of the student loan policy in June 2023 to grant interest-free loans to students.

The scheme was to commence in October 2023, but implementation was repeatedly deferred until a re-enactment in April 2024.

NELFund opened the loan application portal in May 2024, at which time a pilot phase to serve federal tertiary institutions began.

Reports indicate that some students have experienced delays in the disbursement of funds, even after being approved.

This has led to situations where students are nearing exam deadlines or new academic sessions without receiving their loans.

There have also been inconsistencies reported in the amounts disbursed compared to actual school fees, creating confusion about repayment obligations.