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The National Orientation Agency (NOA) has disclosed that some tertiary institutions are colluding with banks to shortchange some students applying for the Federal Government's Students Loan.
It said that recent investigations into the disbursement of the Student Loan Fund have shown some irregularities including the banks and the institutions deliberately withholding financial information from the students for their monetary gains among other fraudulent and unethical practices.
A statement by Paul Odenyi, Deputy Director, Communications and Media, reads "According to the latest report by the Community Orientation and Mobilisation Officers (COMO), of the National Orientation Agency (NOA), schools and banks are conspiring to short-change the students.
"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.
"Initial reports indicated that certain university officials have been withholding vital information regarding loan disbursements, prompting immediate action from NELFUND."
The NOA's feedback, it said, showed 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."
The statement also said 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.
The statement quoted him saying “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, he noted, 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.” he stated.
In response, Mallam Issa-Onilu has issued a strong warning to these institutions and collaborating banks to cease from such activities.
"NOA has directed its 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." the statement concluded.