Reps Ask Unilag, Uniben, Others to Refund Tuition Fee as It Investigates Student Loan

• The House of Representatives has launched an investigation into alleged mismanagement, diversion, and non-disclosure of student loan disbursements under the NELFUND
• Lawmakers also ordered the refund of tuition fees to students who paid before the release of the loans and urged NELFUND to adopt advanced IT systems for better verification and enforcement.
• The initial phase of the scheme targets 1.2 million students in federal institutions, with state-owned school beneficiaries to be announced later

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

In addition to non-compliance with the Student Loans Act of 2024, the House of Representatives has decided to investigate claims of mismanagement, non-disclosure, and diversion of student loan disbursements.

The House directed its committees on university education, banking and other ancillary institutions, anti-corruption, and student loans, scholarships, and higher education financing to examine the issue and report back within four weeks.

Additionally, the Green Chamber ordered all post-secondary educational institutions to promptly reimburse students who paid their tuition fees prior to the release of loans from the Nigerian Education Loan Fund (NELFUND).

This follows a motion raised during a recent plenary session by Aliyu Abdullahi, the member representing the Ikara/Kubau constituency.

To ensure fair, prompt, and transparent access to interest-free loans for all Nigerian students seeking higher education, the Student Loans (Access to Higher Education) Act, 2024 was enacted. According to the government, more than half a million applicants have received over N54 billion.

The National Orientation Agency (NOA) recently reported that several educational institutions and financial organisations conspired to delay, reroute, or conceal the disbursement of student loans under NELFUND. The House took note of this information.

Examples of mismanagement and inadequate verification reported to the House include instances where tertiary institutions uploaded inflated tuition fees on the NELFUND portal, cases of final-year students receiving loans after graduation, and the disbarment of students from institutions despite having paid their fees in full to avoid delays.

Lawmakers warned that without strict oversight and enforcement, these infractions might go unpunished, undermining public trust in the student loan programme.

As a result, the House recommended that NELFUND deploy cutting-edge IT solutions to enhance verification processes and streamline system operations. Furthermore, the Lower Chamber urged NELFUND to notify the relevant authorities and impose sanctions on any institution found in breach of the guidelines or the Act.

It is worth recalling that the first phase of the student loan programme includes 126 federal post-secondary institutions, such as the University of Lagos, University of Benin, and the Federal College of Agriculture, Akure, among others.

Legit.ng has outlined the steps and requirements for applying for the loan. To apply, students must provide their admission letter, National Identification Number (NIN), and bank account details.

This initial phase of the scheme is expected to benefit 1.2 million students from federal government-owned universities, polytechnics, colleges of education, and technical colleges. Beneficiaries from state-owned tertiary institutions will be announced in due course, according to the Nigerian Education Loan Fund (NELFUND).

NELFUND announces update to ease student loan application

Legit.ng reported that following recent issues with student loan applications, the Nigerian Education Loan Fund (NELFUND) has announced updates to ease the loan application process and prevent fraud by stakeholders.

NELFUND revealed plans to deploy IT teams to linked institutions across Nigeria and integrate 'Student Loan' directly as a payment option on their portals.

Speaking at a stakeholders’ engagement session and technical workshop on NELFUND System Automation and Loan Application Processes, held on Tuesday in Abuja, the Managing Director of NELFUND, Akintunde Sawyerr, noted that the proposed integration would eliminate several bottlenecks in the student loan application process.

Source: Legit.ng