MP's fury at student loans fiasco
Compensation should be paid to university students in Lancashire following a fiasco which delayed the paying of their loans and grants, MPs have said.
A backlog in processing grants left universities having to help cover the living costs for students at the start of the academic year in October.
Figures released by the Student Loans Company (SLC) in December suggested 28,000 people from England were still waiting to receive their loans and grants.
Chorley MP Lindsay Hoyle has now tabled a parliamentary motion demanding that the SLC pays out compensation to cover any costs incurred by students because of delays to their loans or grants.
The Labour MP has also raised concerns that the SLC is still axing 150 jobs, despite the recent fiasco.
He said: "The absurdity of this is that not only have they not yet sorted out the current problems, but they have now sent out applications for next year's loans.
"It's an absolute disgrace. It has put students under severe pressure.
"It is time the Student Loan Company paid compensation to those students who have been badly treated because of the incompetence of the company."
The Student Loans Company, which receives around 5,000 applications every day, was unable to guarantee that applications made after the official deadlines between April and June would be processed in time for the start of term.
A damning report in December found that the system for scanning students' documents failed and there was no backup.
When people tried to contact the loans company, as many as 95% of their phone calls went unanswered.
Students can apply for a tuition fee loan of up to 3,225 a year.
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Wednesday 23 May 2012
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