Recent investigations into the disbursement of the Federal Government Student Loan Fund uncovered several unethical practices by some institutions of higher learning.
The National Orientation Agency (NOA) report revealed that beneficiary institutions of higher learning and banks are conspiring to short-change the students; Mallam Lanre Issa-Onilu, Director General of NOA, announced this finding after meeting with Mr. Akintunde Sawyerr, the Managing Director of the Nigeria Education Loan Fund, NELFUND.
A publication signed by Paul Odenyi, Deputy Director, Communications and Media, NOA states, “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 unethical and 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.”
To counteract these anomalies, student loan beneficiaries are advised to verify their disbursement status through their dashboard on the NELFUND portal.
“Students are reminded that there are two reliable ways to confirm disbursement: Upkeep disbursement alert and Dashboard notification.”
“A status marked ‘Disbursed’ means the institutional fee has been successfully transferred to the student’s school.”
NOA further advised students to check the portals regularly and present the information to their institutions. Also, they are to report schools that deny receipt of the disbursed loans to NELFUND via official channels.
The Nigeria Education Loan Fund, NELFUND, is a student loan initiative of the federal government of Nigeria that aims to break financial barriers in higher education by providing interest-free loans to Nigerian students in higher institutions.
NELFUND covers tuition and provides essential upkeep, ensuring that financial barriers don’t hinder education; the loans are interest-free.
The Student’s Loan (Access to Higher Education) Act, 2024 is an Act of the Parliament that allows Nigerian students to access zero-interest loans to pay for institutional charges and upkeep at any higher institution of their choice within Nigeria.
Under this Act, eligible students are those who have secured admission into any of the public Nigerian universities, polytechnics, colleges of education, or vocational schools, with a proof of admission that includes Name, Date of Birth, Admission, JAMB number, Matriculation number, and BVN; all new and existing students within the institution above can apply for the loan.
On loan repayment, beneficiaries are expected to pay back 2 years after completing the NYSC.
However, if such a person does not have a job after 2 years post-NYSC, the beneficiary should notify NELFUND by sworn court affidavit every 3 (three) months until he/she gains employment.
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