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No full loans for many new students

posted : WEDNESDAY, 30TH SEPTEMBER 2009 07:11:31 BST comments : 10

filed under : STUDENT FINANCE
- Search: Student Loans Company problems

Ministers were urged to come clean about problems with the student loans system as it emerged that tens of thousands of teenagers will be starting university without full funding
Ministers were urged to come clean about problems with the student loans system as it emerged that tens of thousands of teenagers will be starting university without full funding

Ministers were urged to come clean about problems with the student loans system as it emerged that tens of thousands of teenagers will be starting university without full funding.

Numerous students have made complaints about delays in processing applications, as the Student Loans Company (SLC) struggles to cope with demand.

The Tories called the delays an "appalling administrative cock-up" and urged ministers to explain how they are dealing with the problems.

Most English universities start their new terms over the next two weeks.

But the SLC confirmed that between 50,000-60,000 students may not receive their full funding when they start university. The SLC said that some students who have applied to be "means-tested" will receive "basic funding" - which consists of tuition fees and basic maintenance grants and loans, as they start their course.

The balance of funding, if it is proved that they qualify for it, will follow by late October, they said. Students mainly from poorer families who are eligible for the "means-tested" extra payments are the most likely to be affected.

SLC deputy chief executive Derek Ross said the situation was not unusual, and happens every year when students submit applications late, or without the right paperwork.

"There are a number of students, who, for whatever reason, their means-tested support isn't in place. What happens is rather than say 'you won't be getting anything while this is sorted out' they get the initial payment."

Mr Ross added: "This is a positive feature of the system, it actually allows more students to have payments at the start of term than was the case five or six years ago."

Delays to processing applications have been caused by record increases in the number of applications to university, fuelled by workers returning to education in the recession, which is putting pressure on the system. Most of the complaints have revolved around problems getting through to advisors, and the SLC says it has opened up 50% more phone lines to deal with calls.

    impressed
    Sunday, 20 September 2009 10:20:28 BST

    my son put his final year loan application in on 3rd August, 09 and he was notified of financial status on 31st August, payment schedule received 9th September. Well done Kirklees Student support department, and SLC.

    busasboss
    Saturday, 19 September 2009 19:36:03 BST

    I have been constantly ringing the Students Loan company, as we put our earnings assesment in at the beginning of May. We have received 4 sets of forms that we have already sent to them, eventually in August, my daughter received her full loans assessment.

    jo
    Saturday, 19 September 2009 13:02:12 BST

    As a mature sudent if it wasn't for student loans, I would never have been able to go to university. I realise it will take me to retiremet to pay it back but thats my choice. Also as I live in Wales I do get extra help from the Welsh Assembly. I suffered problems last year with funding not being in place before i commenced my 2nd year but the SLC soon sorted it. Personally I think they do a brill job.

    PB
    Saturday, 19 September 2009 12:25:31 BST

    If students are so worried about debt then they don't have to take the full loan. Just drink a bit less!

    N
    Saturday, 19 September 2009 00:20:53 BST

    You so lucky people to get student loans. In other countres you don't get any student loans. Students who is from rich family only can afford go to the University. But you british always complain or blame others for your problems.

    Ali
    Friday, 18 September 2009 17:43:19 BST

    I graduated 5 years ago and the balance of my loan has gone up to nearly £17000 as interest of nearly £500 a year goes on it and its so hard trying to get a deposit to try and get on the first rung of the housing ladder, expecting a baby, running a house hold and then seeing if anything is spare to start clearing off the debt when you can't even clear off the interest that's going on each year. I'm keeping my fingers crossed, as is my boyf who also owes about £15k, that the SLC goes bust and all our loans are wiped clean - ahh well, we can dream :o) Seriously thinking of taking our skills to another country in the near future as fed up with this one!

    disgusted
    Friday, 18 September 2009 16:48:13 BST

    The student loan company ( based in Edinburgh where the students dont pay top up fees ) is a shambolic joke. It took nearly 5 months to get my daughters loan sorted out

    jb
    Friday, 18 September 2009 13:58:30 BST

    I think it is a ridiculous system I have a student loan I have started working this year after finishing uni and have so far paid £500 out of my pay yet my debt has gone down by only £18 tbecause of the interest . As I was a mature student I will have to work way past my retirement to ever pay it off. 1

    ''eyes that see''
    Friday, 18 September 2009 10:59:00 BST

    This Government consisting of people who never had to borrow to fund university (grants were used by all senior MPs) have created a 'borrow now to improve your income chances casino wheel' and placed millions of young people in debt before they start off in life.AS in Australia, USA and other less mature societies Tony Blair's Ministers jumped on the bandwagon by adopting a system of student funding that had already started to fail in the countries of origin. The Student Loans taken out in the UKwill default massively in the future and good luck to those students who leave theseshores to make a happy and successful business life elsewhere in the world.This country needs the brightest and gifted and govenments since the 1980shave squandered the talent of our young people.

    Teddy
    Friday, 18 September 2009 08:32:22 BST

    We are asking these young people to put themselves in debt before starting out with the promise of a better job when they qualify. For many this is not true and many never earned enough to pay back the loan. What that has done to add to the countries debt. Do the government publish the figure?Like all agencies in this country you have to wait until they get their act together. Same with D.V.L.A, H.M. Revenue and Customs etc. Unless you owe them!

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