The National Orientation Agency, NOA, issued a stern warning on Sunday to tertiary institutions that connive with banks to perpetrate several unethical practices against successful students for the Federal Government Student Loan Fund, NELFUND, to desist forthwith or face legal actions.
It was gathered that the schools connive with the banks to withhold vital information regarding disbursements from Federal Government Student Loan Fund applicants.
Following investigations, this was revealed in the latest report by NOA’s Community Orientation and Mobilisation Officers (COMO).
Mallam Lanre Issa-Onilu, the Director General of the NOA, announced the findings after meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend.
The NOA boss said the agency’s feedback shows how specific institutions have deliberately delayed payments to successful student applicants for personal financial benefit, in connivance with some banks.
He also said some universities fail to acknowledge the NELFUND’s disbursements to the students. At the same time, the NELFUND boss, Mr. Sawyerr confirmed that some institutions fail to inform students about loan disbursements made in their name while still requiring them to pay tuition fees.
“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,” the NOA boss said.
Mallam Issa-Onilu said the NOA has directed its state directorates to provide further feedback from students nationwide to ensure that the Federal Government takes appropriate actions against erring schools and banks.
