Graduates struggle with withheld loans and miscalculated upkeep payments

A growing number of Nigerian graduates have voiced frustration over the mishandling of the Nigeria Education Loan Fund (NELFUND), revealing that student loans were disbursed to their institutions long after they had completed their studies and paid their fees. To make matters worse, many say they are still receiving monthly upkeep stipends of ₦20,000, despite no longer being students.

In interviews conducted by The PUNCH, affected graduates from several public tertiary institutions expressed disappointment with the inefficiencies in the student loan system, describing the experience as both confusing and burdensome.

Most of them had applied for the NELFUND during their final academic semesters, with the hope of easing financial pressures. However, due to significant delays in disbursement, they were compelled to find alternative ways to pay their tuition and complete their education.

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Disbursement After Graduation: A System in Disarray

“I registered for NELFUND when I desperately needed funds to pay my second-semester final year fees,” said one graduate. “The approval didn’t come in time, so I sourced the money myself. I eventually graduated, only to discover via my student portal that NELFUND had paid my fees in full—after I’d already paid and left school.”

The graduate noted that he was advised to request a refund from the institution, but he questioned the practicality of such a process. “How do I request a refund for fees I’ve already paid and when I’m no longer even a student there? It’s just a mess.”

Many others share similar stories, suggesting that the delayed disbursements are not isolated incidents but reflect a broader failure in the administration of the loan scheme.

A graduate from the University of Benin recounted: “I applied in my final semester and waited for months, but nothing came. I had to borrow money to settle my fees. Then, out of nowhere, I got an alert last month for ₦20,000 upkeep and found out my loan was approved—months after I had already graduated. Why is NELFUND paying graduates?”

Allegations of Fraud and Systemic Failures

The controversy surrounding the student loan program has recently drawn the attention of government agencies. The National Orientation Agency (NOA) has alleged that some public institutions, in collaboration with banks, deliberately delayed processing and disbursement of loans to exploit the system financially.

According to reports, several schools have been deducting unauthorized charges—ranging from ₦3,500 to ₦30,000—from tuition payments made through the loan scheme.

This has triggered a comprehensive probe by the Independent Corrupt Practices and Other Related Offences Commission (ICPC). In a statement last Thursday, ICPC spokesperson Demola Bakare confirmed that a Special Task Force had begun investigations into the matter.

The ICPC’s preliminary findings revealed that while ₦100 billion was released by NELFUND, only ₦28.8 billion reached actual student applicants. The remaining ₦71.2 billion remains unaccounted for, raising serious concerns over transparency and corruption in the program’s administration.

Reactions from Stakeholders

The National Association of Nigerian Students (NANS) has strongly condemned the discrepancies and threatened mass protests if accountability is not enforced.

Meanwhile, the Academic Staff Union of Universities (ASUU) has said it is closely monitoring the situation. ASUU’s National President, Prof. Emmanuel Osodeke, stated, “We are awaiting the result of the investigation, and we hope all those involved will be brought to book.”

Parents have also expressed distress. Mr. Ibrahim, whose son graduated two months ago, said his son continues to receive ₦20,000 upkeep payments despite completing his studies.

“He was shocked when he got the alert. We don’t know how to stop it. We need help,” Mr. Ibrahim said.

Lack of Communication and Oversight

Efforts to obtain a formal response from NELFUND have so far been unsuccessful. The Director of Corporate Communications, Oseyemi Oluwatuyi, did not respond to multiple inquiries at the time of this report.

Critics argue that the situation underscores a lack of oversight and coordination in the disbursement process, and are calling for urgent reforms. Transparency advocates insist that NELFUND must revamp its processes to ensure that only eligible and current students benefit from the program.

Calls for Reform and Accountability

Amid mounting pressure, policy analysts have advised the government to overhaul the student loan scheme’s monitoring mechanisms. Suggestions include real-time student verification, coordinated communication with tertiary institutions, and automatic suspension of disbursements once a student’s academic status changes.

Until such reforms are implemented, affected graduates say they are stuck in a dilemma—uncertain of how to handle funds they no longer need and unwilling to be saddled with loans they didn’t benefit from.

“This is not the help we were promised,” one graduate remarked. “It’s just more problems added after the struggles of school.”

As investigations continue and students demand justice, the credibility of the student loan system—and public trust in education finance—hangs in the balance.