Investigations by the National Orientation Agency and National Education Loan Fund have revealed that banks and schools are short changing beneficiaries of the Federal Government loan initiative.
A statement by the NOA’s Deputy Director of Communications and Media, Paul Odenyi, on Sunday confirmed the shortchanging of students.
Odenyi said recent investigations into the disbursement of the Federal Government Student Loan Fund by the agency uncovered several unethical practices by some institutions of higher learning in connivance with bank officials.
He said: “According to the latest report by the Community Orientation and Mobilisation Officers (COMO) of the NOA, schools and banks are conspiring to shortchange the students.”
Mallam Lanre Issa-Onilu, the Director General of the NOA, announced the findings after meeting with the Managing Director of NELFUND, Akintunde Sawyerr, over the weekend.
Initial reports indicated that certain university officials have been withholding vital information regarding loan disbursements, prompting the immediate action from NELFUND.
The NOA’s feedback showed how specific institutions have, in connivance with some banks, deliberately delayed payments to successful student applicants for personal financial benefits.
Some universities also fail to acknowledge the NELFUND’s disbursements to the students.
Sawyerr confirmed that some institutions are failing to inform students about loan disbursements made in their name while still requiring them to pay 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 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.
