NELFUND Faces Scrutiny Over Student Loan and Interest Determination
Concerns include discrepancies in the "Institutional Loan" amounts and an ambiguous clause allowing NELFUND to determine interest.
Zita Ezechi 
The National Education Loan Fund (NELF) has come under scrutiny following a tweet from concerned students. Student raised questions and concerns about its free-interest loans.
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Concerns include discrepancies in the "Institutional Loan" amounts and an ambiguous clause allowing NELFUND to determine interest.
In the tweet, students raised two critical questions about NELF's student loans:
- Discrepancy in Institutional Loan Amounts: Students questioned why the "Institutional Loan" amount provided by NELFUND is higher than what schools typically charge. Despite being interest-free, the discrepancy has raised eyebrows and prompted calls for transparency.
- Interest Determination Clause: The terms and conditions of NELFUND's student loans include a clause stating that "the interest payable on the principal loan amount shall be determined by NELFUND."
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This has left students wondering how interest calculations will be handled in practice, given the interest-free nature of the loans.
