The introduction of the Nigeria Education Loan Fund (NELFUND) has brought relief to many students, but concerns over rising tuition fees and debt burden have overshadowed its gains. Students who spoke with Business Day expressed mixed feelings about the scheme, citing financial pressure and responsibility as major concerns. Azim, a serving NYSC member, shared his experience with NELFUND, describing it as a mixture of relief, hesitation, and responsibility. He noted that the financial pressure did not become significant until his 400 level at the University of Ibadan.
Azim revealed that school fees at the University of Ibadan were relatively affordable in his 100 level, ranging from N20,000 to N50,000. However, by his 400 level, the fees had risen significantly to approximately N100,000 to N150,000. NELFUND helped reduce his immediate financial pressure, but he is worried about the responsibility that comes after graduation. Azim believes that NELFUND is a valuable initiative that can prevent students from abandoning their education due to financial difficulties, but repayment after graduation could be a significant burden.
Adediran Babatunde, another student, shared a similar experience, saying that NELFUND has been both helpful and challenging. He disclosed that the fund provided major financial relief during his time at the university, but the university management continued to increase fees. Babatunde noted that his fees increased by roughly 300 percent from N28,000 in his 200 level to over N100,000 in his 400 level. He also expressed concerns about the amount reflected on the NELFUND platform, which in some instances appeared to be significantly higher than the actual school fees.
Bankole, a beneficiary of NELFUND, described the loan as useful, especially for indigent students who genuinely cannot afford their education. However, he expressed worry about the level of debt students can accumulate over the years. Bankole noted that if a student begins to collect the loan from 100 level, the total repayment obligation by the time they graduate would become substantial, adding to the financial burden immediately after university.
A student of the Federal University, Oye-Ekiti, reported that the university management has increased fees rather ridiculously, amid the introduction of the student loan. The student noted that the university has decided to continue with its proposed 30 percent increment of fees, despite the introduction of NELFUND. The student also mentioned an extra service charge for payments, which has caused concern among students.
According to NELFUND, the fundamental aim of the fund is to ensure educational equity, providing an opportunity for financially disadvantaged students to start and complete their studies. The goal is to prevent underprivileged students from dropping out due to financial constraints during their research. As NELFUND continues to expand its reach, the coming months will be critical in determining whether the student-loan scheme can deliver sustainable relief amid rising education costs and concerns over repayment.
Stakeholders will be watching closely for stronger funding, greater transparency, and efficient disbursement, while students hope the initiative evolves into a dependable pathway to accessing higher education without leaving beneficiaries burdened by unmanageable debt. The concerns raised by students highlight the need for a comprehensive review of the education system, including the sustainability of the NELFUND scheme and its impact on students.
Key points
- Students welcome NELFUND loan scheme but worry about rising tuition fees and debt burden.
- University management continues to increase fees despite introduction of NELFUND.
- Stakeholders call for stronger funding, transparency, and efficient disbursement to ensure sustainability of NELFUND scheme.
