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'50,000 students' in loan delays '50,000 students' in loan delays
(29 minutes later)
As many as 50,000 students in England might not get all the money they are due until mid or late October, says the Student Loans Company (SLC). As many as 50,000 students in England face starting university this month without the full grants and loans they expected.
The body, which organises loans for the government, says all who applied on time should receive at least the "basic level" loan soon after courses start. The Student Loans Company has struggled to cope with applications and says full payments will be made by late October.
Parts of the loans which are means-tested will be most affected. But it says everyone who applied on time should receive at least the "basic level" loan soon after courses start.
Hundreds of students have e-mailed the BBC News website to complain of delays in the handling of their applications.Hundreds of students have e-mailed the BBC News website to complain of delays in the handling of their applications.
They complain of missing documents, help lines they try for hours to get through to, which then offer them no help.They complain of missing documents, help lines they try for hours to get through to, which then offer them no help.
Some of the e-mails are from people who said they applied on time but had not had their loans approved by the time they started courses this week.Some of the e-mails are from people who said they applied on time but had not had their loans approved by the time they started courses this week.
The backlog has arisen, the SLC says, because of an increase in loan applications and late applications. The backlog has arisen, the SLC says, because of an increase in loan applications and late applications. The body organises the loans for the government.
Basic fundingBasic funding
Most English universities start next Monday (21 September) or a week later, but some courses - such as teacher training - have already begun.Most English universities start next Monday (21 September) or a week later, but some courses - such as teacher training - have already begun.
The chief executive of the Student Loans Company, Ralph Seymour-Jackson, told the BBC everyone who had applied for loans before mid-August would have their applications processed by the time they started their courses.The chief executive of the Student Loans Company, Ralph Seymour-Jackson, told the BBC everyone who had applied for loans before mid-August would have their applications processed by the time they started their courses.
I have no idea whether I'm getting any money to live on when I leave for university in three days Dawn, Bedfordshire Students worry over loans delayI have no idea whether I'm getting any money to live on when I leave for university in three days Dawn, Bedfordshire Students worry over loans delay
All of those applicants would receive at least "basic funding" - that is, tuition fees for their university and the basic maintenance loan - within seven days of starting a course.All of those applicants would receive at least "basic funding" - that is, tuition fees for their university and the basic maintenance loan - within seven days of starting a course.
This means up to 50,000 students will not receive the full amount they could expect from the Student Loans Company, although the balance would follow by mid to late October.This means up to 50,000 students will not receive the full amount they could expect from the Student Loans Company, although the balance would follow by mid to late October.
50,000 represents 5% of the million students who have applied for loans this year.50,000 represents 5% of the million students who have applied for loans this year.
Most affected will be those on the lowest family incomes, because above the basic level of a maintenance loan (which all full-time undergraduates are eligible for) is an additional means-tested element and the processing of those requests is to be done second.Most affected will be those on the lowest family incomes, because above the basic level of a maintenance loan (which all full-time undergraduates are eligible for) is an additional means-tested element and the processing of those requests is to be done second.
Those eligible for other extra support, such as loans for child care will also be affected as these are means-tested.Those eligible for other extra support, such as loans for child care will also be affected as these are means-tested.
Mr Seymour-Jackson appeared on BBC Breakfast News with Claire Swinmurn, who had contacted the BBC News website because her funding and loans for her teacher training course had not come through. She started her course at Oxford Brookes University nearly two weeks ago.Mr Seymour-Jackson appeared on BBC Breakfast News with Claire Swinmurn, who had contacted the BBC News website because her funding and loans for her teacher training course had not come through. She started her course at Oxford Brookes University nearly two weeks ago.
She had written that she was sick to her stomach "as I am petrified that I will have to give up my course due to the delays caused by student finance".She had written that she was sick to her stomach "as I am petrified that I will have to give up my course due to the delays caused by student finance".
We admit the situation is not perfect, but it's reasonable Ralph Seymour-Jackson, Student Loans CompanyWe admit the situation is not perfect, but it's reasonable Ralph Seymour-Jackson, Student Loans Company
She had applied in February and was relying on a childcare grant to cover the cost of her children's nursery places.She had applied in February and was relying on a childcare grant to cover the cost of her children's nursery places.
Mr Seymour-Jackson apologised for the delays and told Claire Swinmum her funding should arrive in her bank account by the weekend. However, she said she understood that this money would not include her childcare grants.Mr Seymour-Jackson apologised for the delays and told Claire Swinmum her funding should arrive in her bank account by the weekend. However, she said she understood that this money would not include her childcare grants.
The SLC said there had been a 16.7% rise in loan applications on last year - reflecting the increase in university applications and a surge of late applications.The SLC said there had been a 16.7% rise in loan applications on last year - reflecting the increase in university applications and a surge of late applications.
The rise is being linked to the recession.
Mr Seymour-Jackson said in the past four weeks there had been 120,000 new applications.Mr Seymour-Jackson said in the past four weeks there had been 120,000 new applications.
"We have had real problems answering the telephones. We have struggled with people trying to get through to us," he said."We have had real problems answering the telephones. We have struggled with people trying to get through to us," he said.
Given the backlog, he said the decision had been taken to process all students for a "basic level" of funding so that everyone had some money to start their courses.Given the backlog, he said the decision had been taken to process all students for a "basic level" of funding so that everyone had some money to start their courses.
"We admit the situation is not perfect, but it's reasonable," he said."We admit the situation is not perfect, but it's reasonable," he said.
Anxious phonecallsAnxious phonecalls
He said the issue was not about processing applications but a "telephone issue".He said the issue was not about processing applications but a "telephone issue".
"It is genuinely very difficult for students to get through on the telephone so they worry they won't get their money on time, but they will," he said."It is genuinely very difficult for students to get through on the telephone so they worry they won't get their money on time, but they will," he said.
Minutes of board meetings of the SLC published on its website show concerns were raised in January about a likely surge in applications and the ability of the phone service to cope.Minutes of board meetings of the SLC published on its website show concerns were raised in January about a likely surge in applications and the ability of the phone service to cope.
They indicate the body asked the government for extra funds to boost capacity and these were apparently given. Extra staff were recently taken on to deal with the calls.They indicate the body asked the government for extra funds to boost capacity and these were apparently given. Extra staff were recently taken on to deal with the calls.
The SLC has written to universities to explain the situation.The SLC has written to universities to explain the situation.
Universities have contingency plans, including hardship loans, to help students who arrive without funding.Universities have contingency plans, including hardship loans, to help students who arrive without funding.
Nicola Dandridge, the chief executive of the umbrella group Universities UK, said universities understood the "concern and anxiety" felt by students who found themselves "in the difficult situation of not having received their student support before they start term".Nicola Dandridge, the chief executive of the umbrella group Universities UK, said universities understood the "concern and anxiety" felt by students who found themselves "in the difficult situation of not having received their student support before they start term".
"Universities have measures in place, such as the Access to Learning Fund, to support those students who face serious financial difficulties through no fault of their own, " she said."Universities have measures in place, such as the Access to Learning Fund, to support those students who face serious financial difficulties through no fault of their own, " she said.
She urged students to contact their university if they were worried.She urged students to contact their university if they were worried.


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