A probe has alleged unethical practices by some universities and banks in the disbursement of student loan funds.
The National Orientation Agency (NOA), through its community
orientation and mobilisation officers (COMO), said some tertiary schools are
suspected of conspiring with banks to unfairly disadvantage students who are
beneficiaries of the loan scheme.
Lanre Issa-Onilu, the director general of the NOA, revealed
these findings after meeting with Akintunde Sawyerr, the managing director of
the National Student Loan Fund (NELFund).
In a statement on Sunday, Issa-Onilu said early indications
suggest that university officials are withholding crucial information regarding
the release of loan funds, prompting NELFund to take immediate action
The NOA said specific institutions, working in collusion
with certain banks, have deliberately delayed payments to successful student
applicants for their financial gain.
It said some universities are failing to acknowledge the
disbursements made by NELFund to the students.
Sawyerr confirmed these concerns at the meeting, stating
that NELFund had discovered instances where institutions received student loan
funds directly but failed to inform the students or properly record the
payments.
“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,” Sawyerr said.
“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.”
Issa-Onilu warned the implicated institutions and
collaborating banks, demanding an immediate end to such activities.
The NOA, he said, has also instructed its state directorates
to gather further feedback from students across the country.
He said this is to enable the federal government to sanction
any erring schools and banks.
President Bola Tinubu enacted an initial version of the
student loan policy in June 2023 to grant interest-free loans to students.
The scheme was to commence in October 2023, but
implementation was repeatedly deferred until a re-enactment in April 2024.
NELFund opened the loan application portal in May 2024, at
which time a pilot phase to serve federal tertiary institutions began.
Reports indicate that some students have experienced delays
in the disbursement of funds, even after being approved.
This has led to situations where students are nearing exam
deadlines or new academic sessions without receiving their loans.
There have also been inconsistencies in the amounts
disbursed compared to actual school fees, creating confusion about repayment
obligations.
NELFund earlier threatened to sue institutions unexplainedly
withholding disbursement information from student loan applicants.
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