NOA uncovers student loan scandal involving universities, banks
Alarming revelations have emerged surrounding the Federal Government Student Loan Fund, as recent investigations by the National Orientation Agency (NOA) expose alleged collusion between some universities and banks to defraud students.
According to a report by Community Orientation and Mobilisation Officers (COMO) of the NOA, several higher institutions and financial institutions are deliberately delaying and mismanaging student loan disbursements, denying eligible students access to critical educational funding.
The Director General of the NOA, Mallam Lanre Issa-Onilu, disclosed the findings following a meeting with Mr. Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), over the weekend.
The report highlights how university officials have withheld vital information on loan disbursements and, in some cases, failed to acknowledge funds already received on behalf of students.
“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,” said Mr. Sawyerr.
“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.”
Findings suggest that students are still being asked to pay tuition fees even when loans have been credited to their institutions. The NOA also noted instances where schools and banks allegedly conspired for personal financial gain by delaying or misrepresenting loan disbursement statuses.
In response, the NOA has directed its state directorates to gather further feedback from students across the country. Mallam Issa-Onilu has issued a stern warning to the implicated institutions and collaborating banks, urging them to desist from such practices. He reaffirmed the Agency’s commitment to ensuring that all erring parties are held accountable by the Federal Government.
