Nigerian Education Loan Fund Launches New Payment System to Prevent Double Fees

The Nigerian Education Loan Fund (NELFUND) has started testing a new payment system designed to stop students from accidentally paying their school fees twice. This comes as nearly 400,000 applications have already been received for the program.

During a press briefing on Wednesday, NELFUND Managing Director Akintunde Sawyerr explained that the new system allows students to make payments directly to their schools using tokens linked to their institutions. Instead of receiving money in their personal bank accounts, students will use a mobile app to authorize payments from their approved loan funds.

Sawyerr noted that the change aims to solve a problem where students sometimes pay fees without realizing that NELFUND has already sent money to their schools. This often happens because students are not informed in time about the fund’s payments, leading to duplicate payments and the need for refunds.

For example, if NELFUND pays a school on a Monday, a student unaware of this might pay the same fees by Wednesday, only to find out about the fund’s payment later. Sawyerr emphasized that these situations are genuine mistakes, not intentional actions.

The new system gives students more control over their payments. They will receive notifications when their fees are ready to be paid and can then authorize the transaction through their phones. Once they do this, the money goes directly to the school, reducing the chance of double payments.

Sawyerr clarified that this is not a cash-disbursement system. Instead, it allows students to initiate payments while ensuring the funds can only be used for their designated institution. He reassured that students cannot transfer the money to their personal accounts or other schools.

Mustapha Iyal, NELFUND’s Executive Director, confirmed that the pilot phase is underway, with close to 400,000 applications received. He explained that the tokens are linked to specific institutions, ensuring that payments can only be directed to the intended school.

The new payment system is part of NELFUND’s effort to ease the financial burden of higher education in Nigeria. It aims to improve access to education for students who struggle with costs, while also ensuring that the payment process runs smoothly among students, NELFUND, and educational institutions.