Student Loans Fiasco

10.45.00am GMT Fri 19th Mar 2010

The National Audit Office has expressed concern that the fiasco over student loans last year might be repeated this autumn. They described the service last year as "unacceptable" - which is strong language from the NAO. With the number of applications expected to double this year there are concerns the Student Loans Company will fail again.

Exeter Lib Dem Graham Oakes said: "We can not have a repeat of the fiasco that happened last autumn. The students who plan to come to Exeter University this year and the ones who are already here need to know their money will be available when the need it - not 6 months late!"

National Union of Students president Wes Streeting said students would feel "sick to their stomachs" at the prospect of a repeat of last year's delays.

The SLC took over processing grants and loans from local authorities last year and then failed to provide the service that was required. Graham added " Scrapping Tuition fees would partly solve this problem but the system still needs to work to support the poorest students through university."

SLC Chief Executive Ralph Seymour-Jackson said: "I am really sorry for the problems and delays and difficulty people had in getting through to us last summer. We didn't give them the service they have every right to expect. Lessons have been learned. We've put right the problems of the past and we will make sure they get the right service this summer."

And he made this pledge: "I can say if the student gets me their application with all the evidence by the key deadline of the end of June, I will make sure they have their money by the start of term when they register at university."

Graham Oakes commented: "The system must work this year and if it doesn't then Mr Seymour-Jackson must resign. I am appalled that the company plan to pay some managers bonuses after such an awful service."