The House of Representatives has launched an investigation into alleged abuse of the Student Loans (Access to Higher Education) Act, 2024. The resolution followed a motion by lawmaker Aliyu Abdullahi, who raised concerns about serious ethical violations within the student loan disbursement process. Over ₦54 billion has reportedly been disbursed to more than 500,000 students, but irregularities are casting doubt on the system’s transparency.
Graduates Still Receiving Loans, Schools Pocketing Fees
Mustapha highlighted shocking discoveries, students who had graduated were still receiving loans, while institutions that had been paid directly were allegedly withholding funds or failing to inform beneficiaries. In some cases, schools collected money for students who had already paid their fees independently. These practices violate NELFUND’s operational rules and undermine the scheme’s credibility. “Some institutions even uploaded inflated fees to the portal,” the lawmaker revealed.
House Demands Refunds, Stronger Oversight
The House condemned the acts as a breach of public trust and has asked for a full-scale investigation. Lawmakers called on the Nigerian Education Loan Fund (NELFUND) to overhaul its verification system using better technology. Tertiary institutions found guilty of misconduct must return any wrongly collected funds and face sanctions. If left unchecked, lawmakers warn, the ongoing scandal may sabotage students’ access to education and destroy public confidence in the initiative.
Reps Probe Student Loan Fraud Scandal
From disbursing loans to already-graduated students, to schools secretly hoarding funds, the fraud in the student loan programme is alarming. The House of Representatives has now taken steps to investigate, recover funds, and restore trust. The scandal proves once again that without proper oversight, even a noble scheme can be twisted for profit. For now, the Reps are probing the student loan fraud scandal with eyes wide open and Nigerians are watching.
