Recent investigations into the distribution of the Federal Government Student Loan Fund have revealed numerous unethical practices by certain higher education institutions. The latest report from the Community Orientation and Mobilisation Officers (COMO) of the National Orientation Agency (NOA) indicates that schools and banks are colluding to short-change students.
Mallam Lanre Issa-Onilu, the Director General of the NOA, disclosed these findings following a meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend.
A statement by Deputy Director, Communications and Media at NOA, Paul Odenyi said “preliminary reports suggest that some university officials have been withholding crucial information regarding loan disbursements, prompting NELFUND to take immediate action.
“The feedback from the NOA reveals that specific institutions, in collusion with certain banks, have intentionally delayed payments to successful student applicants for personal financial gain. Additionally, some universities are not acknowledging the disbursements made by NELFUND to the students.
Mr. Akintunde Sawyerr confirmed that some institutions are failing to notify students about loan disbursements made in their name, while still demanding payment of tuition fees.
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.”
In response, Mallam Issa-Onilu has issued a stern warning to these institutions and the collaborating banks to halt such activities.
“The NOA has instructed its state directorates to gather further feedback from students nationwide to ensure that the Federal Government can take appropriate action against any erring schools and banks,” the statement concluded.
For me is not legal action. Why will I apply for loan for something and bcos the loan is target for something, you will then send the money to later receiver. For me I think the loan should be sent to the student account and not to the school. And please don’t say what if the student spend the money on other things, well is none of your business. When is time to start deducting the money, you deduct. That student may be very good in turn around, before of that semester he has made double of what he or she borrowed. My take is that, the loan should be paid to the student account and not to the school. This will make student not to apply for the loan again because alot of student will pay for what they did collect or see.