Tertiary Institutions Accused of Shortchanging Students in Loan Disbursement Scheme

Several tertiary institutions have come under fire following revelations that they may be colluding with banks to short-change students benefiting from the Federal Government Student Loan Fund (NELFUND).

The Federal Government’s student loan program, managed by NELFUND, is a flagship initiative aimed at easing the financial burden of tertiary education for Nigerian students. 

The alarming discovery was made public over the weekend by the Director General of the National Orientation Agency (NOA), Mallam Lanre Issa-Onilu, after a meeting with the Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr.

A recent report compiled by Community Orientation and Mobilisation Officers (COMOs) of the NOA indicates that certain universities have been deliberately withholding critical information regarding student loan disbursements. 

The report points to unethical collaborations between some school authorities and financial institutions, which have led to unjustified delays in releasing funds to eligible student beneficiaries.

According to Mr. Sawyerr, the situation has become increasingly worrisome.

“Recent findings by NELFUND show that some institutions received student loan disbursements directly into their accounts but failed to inform the affected students or reflect the payments in their financial records. 

Instead, these schools continue to demand tuition fees from the students despite receiving the funds meant to cover such expenses,” he said.

Mr. Sawyerr described the practice as not only unethical but also a direct violation of the principles upon which NELFUND was established. 

He stressed that the agency is prepared to pursue legal action against any institution found culpable.

In a swift reaction, NOA Director General, Mallam Issa-Onilu, issued a stern warning to universities and collaborating banks, urging them to desist from such practices immediately. 

He announced that NOA has directed its state directorates to gather more feedback from students nationwide to aid the Federal Government in identifying and taking appropriate action against defaulting institutions.

“The era of exploiting students through systemic opacity is over. We will ensure that beneficiaries of the student loan scheme get what is rightly theirs without hindrance,” Issa-Onilu affirmed.