NELFUND Warns Institutions Withholding Student Loan Disbursements: “It’s a Crime”
Fund Threatens Sanctions as Investigations Begin Into Alleged Abuse of Loan Scheme
The Nigerian Education Loan Fund (NELFUND) has issued a stern warning to educational institutions, stating that withholding information about student loan disbursements constitutes a criminal offense. This comes as the agency prepares to investigate alleged abuses of the student loan scheme by some beneficiary institutions.
Multi-Agency Investigations Launched
Managing Director Akintunde Sawyerr revealed that separate investigative panels from the National Orientation Agency (NOA), NELFUND itself, and the Federal Ministry of Education will probe the allegations. The announcement was made during a stakeholders’ workshop on system automation and loan application processes in Abuja.
The investigations follow growing concerns about:
- Unauthorized deductions from loan disbursements (ranging from ₦3,500 to ₦30,000)
- Double collection of institutional fees
- Refusal by some institutions to refund students who had already received loans
Institutions Causing “Unnecessary Delays”
Sawyerr expressed particular concern about institutions delaying students’ access to loan funds after receiving payments from NELFUND. “The issues at hand really lie with the management,” he stated, emphasizing that institutions must disburse funds to beneficiaries promptly.
The NELFUND boss made it clear that:
- Students should not wait weeks or months to access education after payment
- No additional charges should be levied on students
- Institutions must provide full educational access including classes, tutorials, and examinations
Current Disbursement Statistics
The agency has already disbursed funds to 303 institutions on behalf of 293,000 students. Sawyerr warned that while administrative sanctions would be imposed on erring institutions, cases involving serious criminal offenses would be referred to anti-graft agencies.
The investigations come after NOA allegations that some institutions and banks were colluding to delay loan disbursements for profit. Sawyerr assured that all three investigating bodies would conduct thorough probes into the matter.
Full credit to the original publisher: The Citizen