The Nigerian Education Loan Fund (NELFUND) has issued a stern warning to tertiary institutions across the country, vowing to sanction any found guilty of fraudulent practices in the administration of the new student loan scheme. The agency said it would no longer tolerate irregularities such as falsifying student records, colluding with students to access loans illegally, or failing to refund excess disbursements.
According to the latest operational guidelines of the loan scheme, obtained on Tuesday, NELFUND emphasised that institutions must refund any overpayments or duplicate disbursements made to students. The document stipulates that such refunds should be processed and issued within a maximum of 30 days or within a timeframe determined by the board. This directive follows reports of some universities and polytechnics coming under scrutiny for failing to return overpaid funds in past loan disbursements.
On penalties, the guidelines make clear that any institution that contravenes the Student Loan Act, 2024, or violates provisions of the scheme’s framework, will face immediate suspension from further disbursements. NELFUND specifically highlighted fraudulent activities such as falsification of student information, collusion with students to obtain loans for ineligible purposes, or refusal to refund duplicate payments as grounds for sanctions.
The fund also noted that disbursements to institutions may be suspended during the investigation of any allegations of misconduct or financial irregularities. However, NELFUND reassured students that such suspensions would not affect their access to loans, except in cases directly linked to overpayments or duplicate transactions.
By issuing these guidelines, the agency aims to tighten accountability in the implementation of the student loan scheme and ensure that resources are deployed transparently for the benefit of qualified Nigerian students, while holding institutions responsible for any infractions.
