Student loan: Allow students with loan applications to sit for exams, FG tells heads of tertiary institutions
The federal government has urged tertiary institutions to permit students who have applied for the student loan programme to sit for their examinations without any restrictions.
The government also set up a high-level committee to streamline and standardise fee payment processes across the country’s tertiary institutions.
It said the committee’s work is aimed at enhancing financial operations between Nigerian universities and the Nigerian Education Loan Fund (NELFUND).
The panel is expected to standardise the nomenclature of the charges, timeline of when NELFUND would disburse institutional loans, and when universities and other institutions would announce disbursements.
Briefing reporters in Abuja on Wednesday after meeting with NELFUND, Vice-Chancellors and heads of tertiary institutions accused of misappropriating student loan disbursements, Minister of Education, Dr Tunji Alausa, said the panel has three weeks to submit its report.
He dismissed as untrue allegations by the Independent Corrupt Practices and other related offences Commission (ICPC) that N71.2 billion was unaccounted for by NELFUND.
The minister said, “The current processes are working, but we are working to better the system we have now.
“The aim is to serve both NELFUND and our citizens more efficiently, and align with the broader agenda of the current administration,” he said.
Dr Alausa admitted that the removal of service charges by beneficiary institutions was responsible for allegations of loan deductions by students.
He stated, “The differences that students are saying from when NELFUND pays the universities and the refund they give back to the student is the service charge. The university takes out its service charge, and that’s what is accountable for those differences.
“We’re working to better streamline those processes and come up with more standardised guidelines to address those issues.”
He described allegations of loan misappropriation by tertiary institutions as “communication problems.”
Alausa revealed that one of the major decisions reached during the meeting was the formation of a committee comprising representatives from NELFUND, the Ministry of Education, the National Universities Commission (NUC), and key university officials.
He explained that while the actual fee amounts might differ by institution, all universities would be required to adopt uniform terminology to ensure transparency.
The minister said, “The committee will determine and publish standard timelines for when NELFUND will disburse funds and when universities must notify students.”
Responding to questions about discrepancies between student fees and what NELFUND pays, Alausa attributed the differences to varying service charges by institutions.
He said the committee would create a clear framework for fee components to eliminate confusion and ensure accurate disbursements.
Alausa added: “Universities will disclose service charges upfront to avoid misunderstandings in refunded amounts.”
The minister reaffirmed the federal government’s commitment to a holistic and student-focused approach to managing educational funding.
The meeting was also attended by the Minister of State for Education, Prof. Suwaiba Ahmad; Managing Director of NELFUND, Akintunde Sawyerr and heads of beneficiary tertiary institutions.
