Tertiary Institutions Shortchanging Student Loan Beneficiaries- NOA

The National Orientation Agency NOA says it has uncovered unethical practices involving some higher institutions and banks colluding to shortchange students whose loans under the Federal Government Student Loan Fund have already been approved and disbursed.

NOA Director General, Mallam Lanre Issa-Onilu, disclosed this at a meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend in Abuja.

He stated that the revelation follows an investigation conducted by the National Orientation Agency (NOA), raising serious concerns about the administration of the loan scheme.

According to Issa-Onilu,
recent investigations into the disbursement of the Federal Government Student Loan Fund have uncovered several unethical practices by some institutions of higher learning.

He confirmed that report by the Community Orientation and Mobilisation Officers (COMO), of the National Orientation Agency (NOA),indicates that schools and banks are conspiring to short-change the students.

“Certain certain university officials have been withholding vital information regarding loan disbursements, prompting immediate action from NELFUND,

“The NOA’s feedback shows how specific institutions have, in conniavance with some banks, deliberately delayed payments to successful student applicants for personal financial benefit.

The DG said the Agency’s state directorates have been directed to provide further feedback from students across the country to ensure that the Federal Government takes appropriate actions against erring schools and banks.

Responding, NELFUND managing Director, Akintude Sawyerr affirmed that some universities failed to acknowledge the Funds disbursements to 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.”

In response, Mallam Issa-Onilu has issued a strong warning to these institutions and collaborating banks to cease such activities. NOA has directed its state directorates to provide further feedback from students across the country to ensure that the Federal Government takes appropriate actions against erring schools and banks.