Federal Gov’t Exposes Irregularities In Student Loan Disbursements By Banks

The NOA said its investigations into the disbursement of the loans have uncovered several unethical practices by some institutions of higher learning.

This was contained in a statement issued to journalists in Abuja on Sunday by the deputy director, communications and media, NOA, Paul Odenyi.

“According to the latest report by the Community Orientation and Mobilisation Officers (COMO) of the National Orientation Agency (NOA), schools and banks are conspiring to short-change the students,” it said.

According to the statement, the Director General of the NOA, Mallam Lanre Issa-Onilu, announced the findings after meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend.

“Initial reports indicated that 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 connivance with some banks, deliberately delayed payments to successful student applicants for personal financial benefit. Some universities fail to acknowledge the NELFUND’s disbursements to the students,” it said.

It noted that Mr. Sawyerr confirmed that some institutions were 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 has issued a strong warning to the higher 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,” the statement said.