The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing has threatened disciplinary action against tertiary institutions accused of failing to properly manage funds disbursed under the Nigerian Education Loan Fund (NELFUND) student loan scheme.

The committee raised concerns over reports that some beneficiary institutions were allegedly holding onto funds released for verified students, delaying refunds for students who had already paid their institutional charges before NELFUND disbursements, or issuing only partial refunds.

NELFUND's official platform states that, following successful verification, payments for institutional charges are made to the relevant institution, while upkeep loans are paid directly into the student's designated bank account.

In a statement issued by the committee, its chairman, Hon. Ifeoluwa Ehindero, said recent monitoring activities and engagements had exposed areas of non-compliance among some institutions participating in the scheme.

According to the committee, such practices could weaken accountability within the student loan programme and leave eligible students struggling to access financial support intended to ease the cost of higher education.

The committee said delays in processing payment notifications and refunds could also create additional financial pressure for students and potentially interfere with their academic progress.

Ehindero therefore called on heads of beneficiary institutions to ensure that bursars, information and communication technology directors and NELFUND desk officers comply fully with the financial procedures governing the scheme.

Institutions were specifically directed to ensure that money received from NELFUND on behalf of students is promptly applied for its intended purpose, including making full refunds where students had already settled their institutional charges before the loan payment was received.

The committee warned that institutions found to have deliberately violated the guidelines could face sanctions under Section 5.6 of the NELFUND Guidelines.

Possible measures, according to the committee, include suspension from participation in the student loan scheme, recovery of improperly handled funds and referral of cases to appropriate regulatory or law enforcement bodies.

The warning comes as the Federal Government continues to expand the student loan programme as a means of reducing financial barriers to tertiary education.

NELFUND says the scheme provides interest-free loans to eligible Nigerian students to help cover institutional charges and upkeep, with the fund responsible for administering the programme. Its current platform lists hundreds of collaborating institutions and more than 1.4 million registered students.

The House committee said its oversight activities would continue, with the aim of improving transparency, accountability and proper management of funds under the scheme.

The lawmakers also reaffirmed their commitment to ensuring that eligible students receive the financial assistance provided for their education rather than having the funds delayed or improperly handled at the institutional level.

Reporting by TalkNaijaMedia