The Nigerian Education Loan Fund has moved against tertiary institutions withholding tuition refunds from students under the Federal Government's student loan scheme, warning that it is engaging affected schools and relevant authorities to enforce compliance.

NELFUND, in a public notice issued on Monday by its Director of Strategic Communications, Oseyemi Oluwatuyi, said it had received reports that some institutions were refusing or delaying refunds to students who had paid their tuition fees before the Fund subsequently disbursed the same amounts directly to those schools on their behalf.

"The Nigerian Education Loan Fund has noted with concern reports of some tertiary institutions delaying or refusing to refund students whose tuition fees had already been paid before NELFUND disbursements, as well as arbitrary increases in tuition and other institutional charges," the statement read.

The Fund condemned the practice as contrary to the objectives of the student loan programme, stressing that the scheme was established to eliminate financial barriers rather than impose fresh burdens on beneficiaries.

"The Student Loan Scheme, an initiative of the administration of President Bola Ahmed Tinubu, was established to remove financial barriers to higher education, not to create additional burdens for Nigerian students," NELFUND stated.

The agency confirmed it had commenced engagement with the affected institutions and relevant authorities to ensure eligible students receive their refunds and that institutional charges remain fair and transparent.

"NELFUND is engaging the affected institutions and relevant authorities to ensure that due refunds are made to eligible students and that institutional charges remain fair, transparent, and consistent with the objectives of the Scheme," it said.

Monday's notice signals a tougher enforcement stance from the agency as complaints from beneficiaries continued to grow. Students have raised concerns over delays in processing refunds despite confirmations that their institutions had already received disbursements from the Fund.

Under the programme, NELFUND pays tuition fees directly to institutions while approved upkeep allowances are credited to beneficiaries' bank accounts. Students who settled their fees before NELFUND's intervention are entitled to full refunds once the Fund remits the equivalent amount to their institution.

The Fund reaffirmed its commitment to protecting students and preserving public confidence in the scheme.

"NELFUND remains committed to protecting the interests of students and preserving the integrity of this landmark national intervention," the statement added.