The Nigerian Education Loan Fund (NELFUND) has condemned what it described as unethical practices by some tertiary institutions accused of withholding tuition refunds from students and arbitrarily increasing school charges despite benefiting from the Federal Government’s student loan scheme.

In a public notice issued on Monday, NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, said the Fund had received reports that some institutions were refusing or delaying refunds to students who had paid their tuition fees before NELFUND subsequently disbursed the same fees directly to the institutions on their behalf.

According to the Fund, the affected students are entitled to refunds where duplicate payments have occurred, stressing that withholding such funds is inconsistent with the objectives of the student loan programme.

NELFUND also expressed concern over what it described as arbitrary increases in tuition and other institutional charges by some higher institutions, warning that such actions undermine the purpose of the scheme and place additional financial burdens on students.

The agency reiterated that the Student Loan Scheme, introduced under the administration of President Bola Ahmed Tinubu, was established to eliminate financial barriers to higher education by providing eligible students with access to interest-free educational loans. It stressed that the initiative was not designed to create opportunities for exploitative practices or additional financial pressure on beneficiaries.

To address the situation, NELFUND said it had commenced engagement with the affected institutions and relevant regulatory authorities to ensure that all eligible students receive their refunds without further delay.

The Fund added that it was also working with stakeholders to ensure that tuition fees and other institutional charges remain fair, transparent and consistent with the objectives of the student loan programme.

“NELFUND remains committed to protecting the interests of students and preserving the integrity of this landmark national intervention,” the statement said.

The agency reaffirmed its commitment to safeguarding the credibility of the student loan scheme and ensuring that beneficiaries receive the full benefits of the Federal Government’s education financing initiative without being subjected to unfair or exploitative practices by participating institutions.