The National Orientation Agency (NOA) has revealed that some institutions of higher learning and banks are shortchanging students in the disbursement of the Federal Government Student Loan Fund.
According to a statement by Paul Odenyi, Deputy Director, Communications and Media at NOA, the agency’s Director General, Mallam Lanre Issa-Onilu, made this disclosure after a meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr.
The investigation found that some university officials were withholding vital information about loan disbursements. In some cases, institutions received student loan disbursements directly into their accounts but failed to inform the students or record the payments in their financial records.
Mr. Sawyerr condemned the practice, describing it as unethical and a breach of the principles guiding the student loan fund. He warned that NELFUND would take legal action against any institution found engaging in such practices.
“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,” he said.
Issa-Onilu directed NOA’s state directorates to gather more feedback from students nationwide about the issue.
He noted that it will help the Federal Government take appropriate action against schools and banks found culpable.
He also urged the implicated institutions and banks to cease these practices immediately.
