Concerns have been raised over the handling of the Federal Government’s student loan scheme at Lagos State University (LASU), following allegations by affected students that funds disbursed under the programme have been withheld, creating financial pressure on both students and their parents.

The allegations relate to the Nigeria Education Loan Fund (NELFUND), which was introduced by the Federal Government to ease the burden of tuition payments during a period of economic hardship. According to students who spoke on condition of anonymity, the intended relief of the scheme has not been fully realised in their case.

Some students alleged that after applying for the loan, they were informed that the university’s school fees payment portal would be shut if fees were not paid within a specified timeframe. This reportedly compelled parents to make additional payments in order to prevent disruption to their children’s academic activities. The students further claimed that #NELFUND later disbursed the approved loan funds to LASU, with the university acknowledging receipt.

Following the disbursement, affected students said they approached the bursary department and requested that the funds be retained and applied to subsequent tuition payments. They were, however, reportedly informed that the institution’s policy required the funds to be refunded to their personal bank accounts instead. While some students accepted this arrangement, they alleged that the refunds have been delayed for several weeks, with some claiming to have waited close to two months without receiving the money.

Despite the unresolved refunds, students alleged that the university has again indicated that the school fees payment portal may be closed, with a reported deadline of December 31, 2025. They said this has created renewed anxiety, particularly for those whose loan funds are still being held by the institution while new payment deadlines approach.

According to the students, some individuals ended up paying tuition fees more than once, even though LASU was already in possession of loan funds meant to cover those fees. Others who applied for additional student loans are said to be facing a situation where the university may be holding the equivalent of one or two academic years’ worth of tuition, depending on individual circumstances.

The alleged issue is said to affect students across multiple academic levels, including those in 200, 300 and 400 levels, as well as some graduates who claim that their school fees have yet to be refunded despite having completed their studies.

The situation has prompted calls for the Federal Government to investigate LASU’s handling of the student loan scheme, amid concerns that the allegations could undermine the purpose of the initiative introduced by President Bola Ahmed Tinubu to reduce the financial burden on families. Some stakeholders have also suggested that student loan funds should be paid directly into students’ bank accounts rather than to institutions, arguing that since the loans are debts to be repaid by students, direct payment may improve transparency and prevent similar disputes.

Those raising the concerns have appealed to the #LASU management, led by Professor Ibiyemi Olatunji Bello, to suspend any planned closure of the school fees payment portal beyond the reported December 31 deadline, investigate the allegations thoroughly, and ensure prompt refunds to affected students. They also urged the university to allow students with evidence of approved loans to continue their academic activities without disruption while awaiting refunds or further disbursement.

As of the time of writing, the university has not issued a public response to the allegations.