The Nigerian Education Loan Fund (NELFUND) has unveiled operational guidelines for the administration of student loans in public tertiary institutions, warning that universities, polytechnics, and colleges of education found culpable of fraudulent practices risk sanctions, including suspension from the scheme.
The guidelines, issued in line with Section 23(3) of the Student Loans (Access to Higher Education) Act, 2024, outline clear procedures for application, disbursement, repayment, and accountability under the Federal Government’s student loan programme.
According to the document, institutions must refund any overpayment or duplicate payment made on behalf of students within 30 calendar days. Failure to comply, or engaging in fraudulent activities such as falsifying student records or colluding with students to obtain loans could lead to suspension from further disbursements.
“An institution shall be suspended if it engages in fraudulent activities related to institutional charges payment, such as falsifying student information or colluding with students to obtain loans for ineligible purposes, or if it fails to refund any overpayments or duplicate payments made for any student,” the Fund stated.
While clarifying that suspensions would not affect existing students already enrolled in the scheme, except in cases of overpayments, NELFUND emphasised that disbursements may be halted during investigations into alleged misconduct.
“Key highlights of the guidelines include: Eligibility: Applicants must be Nigerian citizens with valid admission into an eligible institution and provide NIN, BVN, and JAMB details.
“Application: All loan requests will be processed via the NELFUND online portal.
“Disbursement: Loans will be paid directly to institutions to cover tuition and charges, while optional upkeep allowances may go to students.
“Repayment: Beneficiaries will commence repayment two years after NYSC or exemption, contributing 10% of their income monthly.
“Compliance: Institutions must verify applications within 20 working days and adhere to reporting requirements,”
Speaking at the release, Akintunde Sawyerr, NELFUND Managing Director, said the initiative is aimed at breaking financial barriers to education.
“This initiative goes beyond providing loans; it is about removing financial barriers to education, fostering skills development, and building a future where every Nigerian student can achieve their potential regardless of background. These guidelines provide the roadmap for institutions and students to access the scheme transparently and effectively,” he said
NELFUND further assured that the scheme will be implemented with fairness, inclusivity, and strict compliance with the Nigeria Data Protection Act, 2023.
