Some universities and banks are being accused of working together to cheat students who applied for government loans. This was revealed by the National Orientation Agency (NOA), which is investigating how student loans are being handled.

According to the NOA, some universities are teaming up with certain banks to delay or hide loan payments meant for students. The Director General of NOA, Lanre Issa-Onilu, shared this after a meeting with the Managing Director of the National Student Loan Fund (NELFund), Akintunde Sawyerr.

They found that some schools are not telling students that their loans have been paid. Instead, the money goes straight to the universities, and they don’t inform the students or update their financial records properly. This creates confusion for students who don’t know if their fees have been paid or not.

Sawyerr confirmed that some universities got the money but didn’t pass the information to the students. He said this behavior is not only wrong but also goes against the goals of the student loan program. He warned that NELFund is ready to take legal action against any school found guilty.

The NOA has now told its state offices to talk to students and gather more information so that the government can take action against any universities or banks involved in this wrongdoing.

President Bola Tinubu started the student loan program in June 2023 to help students with interest-free loans. The program began in May 2024 for federal universities. However, some students say they are still waiting for the money, even after getting approved. Others say the money they received is less than their actual school fees, making it hard to understand how much they have to repay.

NELFund has already warned schools to be honest and clear about how they handle the loans or face legal consequences.