Despite repeated assurances from the Federal Government that student loans would be disbursed in full and with transparency, university students across the country are raising the alarm over what they described as incomplete and inconsistent payments.

Many recipients reported receiving between ₦40,000 and ₦54,000, well below the promised ₦60,000 on the Nigerian Education Loan Fund (NELFUND) portal, according to evidence obtained by LEADERSHIP.

Our correspondent gathered that, making matters worse, some institutions are now imposing late payment penalties on tuition fees, even though the loan disbursement delays were beyond the students’ control.

This has led to mounting tension on campuses, with students in several universities already mobilising for protests to demand accountability and transparency in the loan disbursement process.

The Federal Government had initially announced that students would receive monthly stipends of ₦20,000 directly into their personal accounts, while tuition fees would be paid directly to the universities.

However, after a wave of student protests, institutions like Joseph Sarwuan Tarkaa University (JOSTUM), Makurdi, hoarding the loan began disbursing the loan funds directly to students’ accounts, instead of paying their school feels directly as of yesterday.

Some students who spoke to our correspondent reported discrepancies in the amounts received. While the official loan package was expected to range from ₦60,000 and above, based on their official school fees rate, numerous students have confirmed receiving between ₦40,000 and ₦54,000, but are due to pay back the official amount on their portal.

At JOSTUM, our correspondent gathered that students were already planning a protest next Monday, titled “Against Embezzlement of NELFUND and Government Allocation for Student Fees.”

Speaking anonymously to LEADERSHIP, the student activists said, “We, the students of Joseph Sarwuan Tarka University Makurdi, are writing to express our outrage and disappointment over the alleged embezzlement of NELFUND and government allocation meant for settling our school fees and refunding students who have already paid.

“This act of financial malfeasance has caused significant hardship and financial strain on many students. We demand immediate investigation into the alleged embezzlement.

“Transparency in the management and disbursement of NELFUND and government allocation and settlement of outstanding fees for all affected students.

“Refund of fees already paid by students who are eligible for the benefits. We urge the university administration to take swift and decisive action to address this issue. If our demands are not met, we will proceed with the planned protest.”

Another student lamented, “I paid my fee in full and school is refunding me ₦1,850. I really don’t understand right now.”

A student from the Department of Microbiology at JOSTUM lamented that the deductions were not what the government promised them, saying that the students feel betrayed.

“After adding late registration charges to our school fees which were supposed to be ₦52,000, now ₦55,000, they sent ₦54,000 to us.”

Amid these concerns, NELFUND has called on student leaders across various tertiary institutions to take full ownership of the interest-free education loan scheme.

Managing Director/Chief Executive of NELFUND, Mr. Akintunde Sawyerr, made this call at a Stakeholders Engagement Session & Technical Workshop Day 4, which attracted Students Union Presidents of tertiary institutions and officials of the National Association of Nigerian Students (NANS) on Thursday in Abuja.

Sawyerr said, “To make this work, we need you. Your voice. Your leadership. Your engagement on campus. Help us raise awareness, refine our processes, and ensure that this scheme reaches every student it was designed to serve.”

He emphasised that NELFUND is fully committed to removing financial barriers and creating opportunities for all Nigerian students to thrive, in alignment with President Bola Ahmed Tinubu’s Renewed Hope Agenda.

On his part, the Executive Director of Operations at NELFUND, Mr. Iyal Mustapha, warned institutions against delays in verifying students’ applications.

According to him, “We need your schools to respond quickly. If they don’t confirm your status, we can’t release the funds.
You must be involved in making sure your institutions do the right thing.

“This is your opportunity. We are the youth, and we are here to support you. This loan is about removing barriers so you can focus on your education.
There is no interest, no guarantor, and no harassment just commitment to learning.”

He explained that the loan scheme was designed to tackle dropout rates due to financial hardship, offering Nigerian students access to loans that cover institutional charges and provide monthly upkeep support.

“There is no reason for anyone to drop out of school,” he emphasised.

Mustapha also addressed concerns about repayment, assuring students that repayment would only begin two years after completing National Youth Service Corps (NYSC), and only if the graduate is employed. In cases of death or verified permanent disability, the loan would be forgiven.

“No one is chasing you. This is your loan. This is your government. And your repayment helps the next generation,” he said.

He also clarified, “Anyone that has gotten upkeep, it’s important to know that his/her institutional charges have already been paid to the institution.

“One of the things we realised is that some of the institutions are not notifying the students of payment.”

Also speaking, the President of the National Association of Nigerian Students (NANS), Olushola Oladoja, warned institutions and individuals allegedly sabotaging the federal government’s student loan scheme.

Oladoja said the association had set up a five-man investigative committee to probe growing concerns over the disbursement and accountability of the loan funds:

“We got information that there are issues in NELFUND cases where the fund claims to have paid institutions, but schools failed to notify the students.
This cannot be allowed to continue. Our committee will engage NELFUND directly, we will visit the Independent Corrupt Practices Commission (ICPC) to verify their findings, and we will get to the bottom of this.”