House Of Reps To Probe Alleged Violation Of Student Loan Act

The House of Representatives has resolved to probe reports of alleged violations of the Student Loan Act.

This decision follows a motion raised by lawmaker Aliyu Abdullahi, who highlighted serious concerns about how student loans are being handled.

During the session, another member, Mustapha, expressed alarm over possible unethical practices affecting the credibility of the student loan system introduced under the 2024 Student Loans (Access to Higher Education) Act.

The loan program, which provides interest-free financial aid to qualified Nigerian students, has already registered over 500,000 applicants and disbursed more than ₦54 billion across the country. But troubling reports have raised questions about how the program is being managed.

Mustapha pointed out several irregularities, such as loans still being sent to students who have already graduated, and schools receiving loan payments even after students had personally paid their fees.

The lawmaker also alleged that some universities and financial institutions may be working together to delay or mismanage funds, including failing to notify students after receiving money meant for them.

He cited findings from the Federal Ministry of Education showing that some schools made unauthorized deductions from loan payments—actions that violate both public trust and the Student Loans Act.

According to Mustapha, weak oversight has led to other issues, such as inflated tuition fees listed on the student loan portal and disbursements being made without proper checks.

He warned that these problems not only disrupt the goal of giving more Nigerians access to higher education but could also destroy public trust in the entire program if not addressed quickly.

After debating the motion, lawmakers urged the Nigerian Education Loan Fund (NELFUND) to improve its verification and monitoring systems using better technology.

They also called for penalties against any schools found to be breaking the rules, and instructed relevant committees to investigate the matter thoroughly. Institutions were also directed to return any student fees they wrongly collected.

KanyiDaily recalls that House of Representatives Speaker, Abbas Tajudeen, recently withdrew a bill that sought to make voting mandatory for every eligible Nigerian.