Institutions, banks withholding student loan funds – NELFUND
An investigation into the handling of the Federal Government’s student loan programme has revealed that some tertiary institutions, in collaboration with banks, are allegedly withholding disbursed loans from students.
The findings were presented on Sunday by the Community Orientation and Mobilisation Officers of the National Orientation Agency, following reports of unethical practices.
The issue came to light during a meeting between the Director General of NOA, Mallam Issa-Onilu, and the Managing Director of the Nigerian Education Loan Fund, Mr. Akintunde Sawyerr, over the weekend.
According to the statement signed by the agency Spokesman, Paul Odenyi, several institutions have failed to inform students about loan disbursements made on their behalf, while still demanding tuition payments.
According to Sawyerr, some institutions have received student loan funds directly but have neither notified the beneficiaries nor credited the payments in their records, resulting in confusion and financial hardship for the students.
He stated, “Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion.
“Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded.
“We are prepared to take legal action against any institution engaged in such deceptive practices,” the statement noted.
The NOA has since instructed its state directorates to gather further feedback from students to help the government take necessary action against erring schools and financial institutions.
A warning has also been issued to institutions and banks involved in the malpractice to immediately halt such conduct.
