NELFUND: Students Lament Loan Delays Amid Exam Anxiety

The Nigerian Education Loan Fund (NELFUND) was established to provide financial assistance to students in tertiary institutions across Nigeria. Its primary goal is to ensure that no Nigerian student is deprived of higher education due to financial constraints. However, recent delays in loan disbursements have left many students frustrated, particularly as examination periods approach.

This article explores the reasons for disbursement delays, the impact on students, and what the government has said about the delay.

The Promise of NELFUND

NELFUND was created under the Students Loan Act of 2023, with the Central Bank of Nigeria (CBN) overseeing its management through designated financial institutions. The initiative was widely celebrated, with thousands of students applying for loans upon its launch.

According to the official NELFUND portal the scheme aims to:

• Provide interest-free education loans to Nigerian students.
• Assist students in paying tuition fees, accommodation costs, and educational materials.
• Ensure widespread accessibility, regardless of socio-economic status.

However, despite these promises, the delay in fund disbursement has caused anxiety among students who rely on these loans for survival.

Also Read: Latest Update On Nelfund Student Loan Application 

Rising Concerns Over Disbursement Delays

Many students who have been approved for NELFUND loans are yet to receive their funds, even as examination dates approach. The lack of clarity on the disbursement timeline has left students stranded, struggling to pay for tuition, accommodation, and study materials.

A student from University of Ilorin, Kayode Ibrahim Onipede, shared his frustration:

“I don’t see any reason why a loan disbursement status will be verified without actual payment. The money should be disbursed immediately after verification, even if in bulk.”

The National Association of Nigerian Students (NANS) has also raised concerns about the delay, urging the government to fast-track the process.

Reasons for NELFUND Disbursement Delays

Several factors have been identified as causes of the delay in loan disbursements:

1. Institutional Verification Delays

Before releasing funds, NELFUND requires universities and polytechnics to verify students’ enrollment and eligibility. However, some institutions have been slow in submitting their verification reports.

NELFUND officials have confirmed that many institutions are yet to complete the verification process, causing delays in payments.

What NELFUND Said:

“We cannot disburse loans to students whose institutions have not verified them. Institutions need to complete their verification process for payments to be made.”

2. Security and Compliance Checks

NELFUND is conducting extensive background checks on applicants to prevent fraud. This includes:

• Verifying students’ admission status.
• Ensuring applicants meet eligibility criteria.
• Preventing double applications from students.

While these measures are necessary, they have prolonged the disbursement timeline.

3. Technical and Administrative Challenges

Some students have also reported technical issues on the NELFUND portal, making it difficult to track their application status. Furthermore, government bureaucracy has slowed down the final approval process.

Impact of Loan Delays on Students

The delay in disbursement has had a negative impact on students:

1. Academic Struggles

• Students cannot afford textbooks, laboratory fees, and online study materials.
• Some students risk missing exams due to unpaid fees.

2. Accommodation Crisis

• Many students rely on the loan to pay rent.
• Some have faced evictions due to non-payment.

3. Increased Mental Stress

The uncertainty has led to:

• Anxiety and depression among students.
• Reduced concentration on academic activities.

4. Risk of Dropping Out

Students from low-income backgrounds who cannot afford tuition without the loan risk dropping out if the delay persists.

Government’s Response to the Delays

The Federal Government has acknowledged the delays and provided updates:

1. Reassurances from NELFUND Officials

NELFUND has assured students that all approved applicants will receive their loans once the verification process is complete.

“The delay is not due to lack of funds but due to verification issues with institutions. We are working on resolving these issues swiftly.”

2. Minister of Education’s Statement

The Minister of Education, Tahir Mamman, has urged universities to speed up verification to facilitate payments.

“We are working closely with institutions to ensure a smooth and fast disbursement of the funds.”

3. Urgent Directives to Universities

The Federal Government has directed all tertiary institutions to submit outstanding verification reports before the next batch of disbursements.

What Students Can Do While Awaiting Disbursement

While waiting for disbursement, students are advised to:

1. Check the NELFUND Portal Regularly

Students should frequently visit nelf.gov.ng to monitor updates on their loan status.

2. Contact Their Institution’s Financial Aid Office

Universities and polytechnics play a key role in verification. Students should engage with their school’s financial aid office for updates.

3. Seek Alternative Financial Support

While waiting, students can:

• Apply for scholarships via platforms like Scholarship Digest.
• Look for part-time work opportunities.

4. Join Student Advocacy Movements

Groups like NANS are actively engaging the government to fast-track disbursements. Students can participate in peaceful advocacy to demand solutions.

Future Improvements for NELFUND

To prevent future delays, experts recommend:

• Automating verification for faster processing.
• Direct disbursement to students instead of relying on schools.
• Creating a transparent communication channel between NELFUND and applicants.

Conclusion

The delays in NELFUND loan disbursements have caused widespread frustration among Nigerian students, particularly as exams approach. While government officials cite institutional verification issues, students face real financial hardships.

Moving forward, urgent reforms are needed to streamline the process and ensure that the NELFUND program fulfills its promise of supporting students financially. In the meantime, students should stay informed, engage with their schools, and explore alternative funding sources.