The National Orientation Agency (NOA) has uncovered a disturbing trend in the Federal Government’s student loan program. Some tertiary institutions, in collaboration with banks, are allegedly withholding disbursed loans from students, causing unnecessary confusion and financial hardship.
According to Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFund), “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 emphasized that 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,” he warned.
The NOA has instructed its state directorates to gather further feedback from students to help the government take necessary action against erring schools and financial institutions. Institutions and banks involved in the malpractice have been warned to immediately halt such conduct.
This scandal highlights the need for transparency and accountability in the student loan program. Students who have been affected by these practices can expect support from the government as it takes steps to address the issue and ensure that loan disbursements are handled fairly and efficiently.
