NELFUND Alleges Banks, Institutions Are Withholding Student Loan Funds
According to an examination into how the federal government’s student loan program is being handled, certain universities are allegedly working with banks to deny students their disbursed loans.
In response to allegations of unethical behavior, the National Orientation Agency’s Community Orientation and Mobilization Officers delivered the results on Sunday.
Over the weekend, Mallam Issa-Onilu, the Director General of NOA, and Mr. Akintunde Sawyerr, the Managing Director of the Nigerian Education Loan Fund (NELFUND), met and discussed the matter.
Despite continuing to demand tuition payments, several universities have neglected to notify students about loan disbursements made on their behalf, according to a statement signed by agency spokesperson Paul Odenyi.
Sawyer claims that some institutions have received student loan cash directly but have failed to acknowledge the payments in their records or notify the beneficiaries, leaving the students in a state of confusion and financial distress.
“Recent NELFUND findings have demonstrated that certain institutions have received student loan disbursements straight into their accounts but fail to notify the impacted students or document the payments in their financial records, causing needless confusion,” he said.
“It is unethical and a violation of the NELFUND founding principles to withhold important financial information from students.
According to the statement, “We are ready to pursue legal action against any institution involved in such dishonest practices.”
Since then, the NOA has directed its state directorates to collect additional student input so that the government can take the appropriate measures against negligent financial and educational institutions.
Additionally, banks and institutions engaged in the malpractice have received a warning to immediately stop their actions.
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