The Nigerian Education Loan Fund (NELFUND) has consistently called for collaboration with tertiary institutions to update student records. This collaboration is essential to ensure a transparent, efficient, and stress-free loan disbursement process. The fund has taken several steps to address the challenges faced by students and institutions in accessing and administering the loans.
Key Issues and NELFUND’s Response
- Verification Delays: A significant challenge has been the failure of many institutions to verify student applications in a timely manner. As a result, NELFUND has had to extend its student verification portal multiple times, including a final 48-hour window for 203 defaulting institutions to complete the verification exercise for the 2024/2025 academic session.
- Withholding Information: NELFUND has issued strong warnings to institutions that, after receiving loan disbursements, fail to inform students and update their records, leading to confusion and financial hardship for students who are still required to pay fees. The fund has threatened legal action against institutions engaging in such practices.
- Building a Technology-Driven System: NELFUND is developing a more advanced, technology-driven system to improve access and transparency. This includes exploring options to connect directly to institutions’ portals and allowing students to apply for loans through their school’s systems.
- New Guidelines: The Federal Ministry of Education, in collaboration with NELFUND, has released new guidelines to standardize the administration of institutional charges. These guidelines are a result of consultations with stakeholders and aim to streamline the process, replace previous individual agreements, and ensure that no eligible student is denied access to education due to funding delays.
Progress and Future Outlook
NELFUND has reported significant progress since the loan scheme was launched. The fund has disbursed a substantial amount in loans, benefiting hundreds of thousands of applicants for both institutional fees and upkeep allowances. The number of applications continues to grow, demonstrating the pressing need for financial assistance among Nigerian students. NELFUND’s focus on collaboration, transparency, and a technology-first approach aims to build a sustainable system that puts students at the center of the national development agenda.
