The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against imposing what it considers unjustified increases in tuition and other charges, saying schools that take advantage of the student loan scheme could lose access to payments under the programme.
NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyer, disclosed this during an interview with TVC News Breakfast on Wednesday.
Sawyer said the agency had observed cases where some institutions increased their fees after the introduction of the student loan scheme, apparently taking advantage of the additional funding available to students.
He said NELFUND had responded by introducing guidelines to regulate charges submitted by institutions and had rejected payments where fees were considered unreasonable.
“Some schools have gone out on a limb to increase their fees unfairly,” Sawyer said, adding that the fund had been “very stern” with institutions whose charges had been increased without justification.
According to him, some institutions subsequently reversed their fee increases after realising that NELFUND could withhold payment for charges it considered excessive.
Sawyer said the measures were introduced to ensure that the student financing programme did not inadvertently encourage institutions to raise fees beyond reasonable levels.
850,000–900,000 students receive upkeep allowance
The NELFUND chief also addressed concerns over delays in the payment of students’ monthly upkeep allowances, explaining that the agency’s processing target is about 45 days.
He said the process involves verification by the beneficiary’s institution, which can affect the time it takes for approved applicants to receive payment.
According to Sawyer, NELFUND typically spends about 30 days processing applications internally before forwarding them to institutions for verification. The institutions are expected to complete the verification within 15 days.
He acknowledged, however, that some institutions complete the process much faster while others take longer.
Sawyer disclosed that between 850,000 and 900,000 students had received upkeep allowances, which are paid directly into beneficiaries’ bank accounts.
He said the direct payment system was designed to ensure that students receive the funds without unnecessary intermediaries.
NELFUND vows action against institutions creating barriers
The NELFUND boss also warned institutions against imposing additional charges on students as a condition for accessing the loan scheme.
While saying he was not personally aware of institutions engaging in such practices, Sawyer said the agency would not tolerate any attempt to create additional financial barriers for beneficiaries.
“We will not allow that to happen under any circumstances,” he said.
He maintained that institutions participating in the scheme were expected to comply with NELFUND’s guidelines and ensure that students could access the financing programme without unfair charges.
Agency says N322bn disbursements are traceable
On concerns about the management of funds under the scheme, Sawyer said more than N322 billion disbursed by NELFUND was traceable through electronic transactions.
He said the agency does not make cash disbursements, explaining that payments to institutions and individual beneficiaries are processed electronically.
According to him, NELFUND is subject to internal and external audits as well as oversight from the Economic and Financial Crimes Commission, the National Assembly and other relevant authorities.
He said the fund also operates within data protection regulations to safeguard the personal and financial information of beneficiaries.
The student loan scheme currently covers publicly owned universities, polytechnics and colleges of education, including federal and state-owned polytechnics.
NELFUND’s latest position places greater emphasis on the responsibility of participating institutions to keep their charges within reasonable limits as the Federal Government expands access to student financing.
