The Federal Government has frowned at tertiary institutions for withholding funds paid into their accounts for students who applied for loans.
according to reports, the National Orientation Agency (NOA) alleged that heads of tertiary institutions and banks conspired to shortchange some students on the loan scheme.
In a statement on Sunday, NOA stated that a report by its Community Orientation and Mobilisation Officers (COMO), showed that some institutions failed to reveal information on the loan scheme to students.
NOA’s Director General, Lanre Issa-Onilu, announced the findings after meeting with the Nigerian Education Loan Fund (NELFUND) Managing Director, Akintunde Sawyerr, on Saturday.
“Initial reports indicated that certain university officials had been withholding vital information regarding loan disbursements, prompting immediate action from NELFUND.
“The NOA’s feedback shows 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,” he said.
NELFUND’s DG, Sawyerr, confirmed that some institutions failed to inform students about loan disbursements made in their name while still requesting they 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,” he stated.
Issa-Onilu further 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.