Recent investigations into the disbursement of the Federal Government Student Loan Fund have indicated that some tertiary institutions are not fully disbursing the loans to their students.
This is according to the latest report compiled by the Community Orientation and Mobilisation Officers (COMO), of the National Orientation Agency (NOA).
The report of the investigations obtained by Vital News on Monday highlighted several unethical practices involving some tertiary institutions in their handling of the loans .
According to the report, the tertiary institutions have been conniving with banks to short-change the students.
Mallam Lanre Issa-Onilu, the Director General of the NOA, announced the findings at the weekend shortly after a meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr.
He said : “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.
“Mr. Akintunde 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.”
Issa-Onilu speaking further said : “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, Issa-Onilu said he has issued a strong warning to the affected institutions and collaborating banks to cease such activities.
He has also directed NOA 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. (vitalnewsngr.com)
