The Nigerian Education Loan Fund (NELFUND) has cautioned universities and other higher institutions that any involvement in fraudulent activities linked to the student loan scheme will attract penalties.
According to operational guidelines released by the agency on Tuesday, schools found guilty of offences such as falsifying student data, colluding with students to access loans illegally, or failing to return excess funds will face disciplinary measures.
The new framework follows earlier reports of institutions being flagged for duplicate loan payments and delays in refunding excess disbursements.
The document stated, “An eligible tertiary institution shall refund any overpayment or duplicated payments made for any student. Institutions are to process and issue refunds within a maximum of 30 calendar days, or within such other period as may be determined by the board.”
On the issue of sanctions, the guidelines made clear that institutions breaching the Student Loan Act, 2024, or any related policy would be barred from receiving future disbursements.
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It added: “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.”
NELFUND explained that such suspensions could also be applied while allegations are being investigated. However, it assured that existing beneficiaries would not be affected, except in cases where overpayments or duplicate claims are involved.
