The Nigerian Education Loan Fund (NELFUND) has introduced a new payment arrangement aimed at preventing students from paying their school fees twice under the Federal Government’s student loan scheme.
The development is expected to address complaints involving students who paid their tuition fees independently, only to discover later that NELFUND had already paid the same charges to their institutions.
The new arrangement is designed to improve transparency, reduce payment disputes and protect students and their families from unnecessary financial pressure.
How the New NELFUND Payment System Works
Under the proposed arrangement, NELFUND is piloting a token-based payment system that enables eligible students to authorise approved tuition payments to their institutions using their mobile phones.
The token is linked to a designated institution and is intended to ensure that the approved funds are used for their specific purpose rather than diverted elsewhere.
NELFUND officials explained that the initiative would improve coordination between the Fund, students and tertiary institutions, particularly in communicating the status of school fee payments.
The move is intended to reduce situations in which students pay their fees without knowing that their loan payments have already been processed.
Why NELFUND Is Changing the Rules
Double payment can occur when a student pays a university or other tertiary institution to meet a registration deadline while a NELFUND tuition payment is also being processed or has already been received by the school.
When both payments are made, the student may have to pursue a refund from the institution.
This can create additional financial difficulties for families who borrowed money to pay the fees while waiting for the student loan.
The new system is intended to improve payment notifications and reduce the risk of such situations occurring.
What Students Must Do
Students benefiting from the scheme should take the following precautions:
- Check their loan status: Regularly monitor their NELFUND application and payment updates.
- Confirm with their institutions: Contact the bursary or relevant school office to establish whether tuition fees have been paid.
- Keep payment evidence: Retain receipts, bank transaction records and relevant NELFUND notifications.
- Avoid duplicate payments: Confirm the status of their approved tuition payment before paying the same charges again, where registration deadlines permit.
- Seek clarification promptly: Students who discover that both they and NELFUND have paid the same fees should contact their institution’s bursary to establish the appropriate refund procedure.
Students should not assume that a loan application has resulted in payment until the payment status has been confirmed.
What Parents Need to Know
Parents and guardians who support students financially should also verify whether school fees have already been settled before raising additional money for the same charges.
NELFUND has indicated plans to introduce a mechanism through which parents can verify their children’s school fee payment status.
The proposed measure is expected to help families avoid unnecessary borrowing and make better-informed financial decisions.
Will the New System Affect Upkeep Allowances?
The change is primarily concerned with approved tuition payments to institutions. It should not automatically be interpreted as the cancellation of students’ upkeep allowances, which are handled separately under the loan scheme.
Students should consult official NELFUND communications for details of their individual loan entitlements and payment status.
What Happens to Students Who Have Already Paid Twice?
Students who have already paid their school fees while NELFUND also paid the institution should keep all relevant receipts and contact the institution’s bursary for reconciliation.
A refund should not be assumed to be automatic; the institution may need to verify both transactions before deciding on the appropriate action.
NELFUND’s Next Steps
The Fund has also indicated plans to organise awareness workshops across Nigeria’s six geopolitical zones to educate students, parents and tertiary institutions about the payment process.
The success of the initiative will depend on effective communication, accurate payment records and cooperation between NELFUND and participating institutions.
For students and parents, the central message is clear: confirm the status of tuition payments before paying the same fees again.
