An investigation into Nigeria’s student loan program has revealed that some universities, working with banks, are allegedly withholding disbursed loan payments from students.
The National Orientation Agency (NOA) claimed that reports surfaced, which showed that certain institutions failed to notify students about loans deposited into school accounts on their behalf.
NOA’s Community Orientation and Mobilisation Officers presented the findings during a meeting between NOA Director-General, Mallam Issa-Onilu, and Nigerian Education Loan Fund (NELFUND) Managing Director, Akintunde Sawyerr, over the weekend.
“Some institutions have received student loan funds directly but neglect to inform the affected students or record the payments in their financial records,” Sawyerr stated.
NELFUND warned that any institution involved in the withholding of funds could face legal consequences.
“Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded,” the statement read.
The NOA has instructed state directorates to collect feedback from students to help the government take decisive action against erring institutions and banks.
Schools and financial institutions engaging in these practices have been warned to halt such misconduct immediately.
Track Your Loan Yourself
NELFUND, therefore, have advised student applicants that they can track their student loan disbursement on the NELFUND portal.
“Students who applied for upkeep will also receive a disbursement alert. For all students, your dashboard shows the exact date and status (e.g., Disbursed) once your institutional fees are paid.
“Check your portal, stay informed, and report any discrepancies“, the agency advised.
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