news story

4th January 2010

MP Protests to Ministers over Local Students Without Cash

Local MP Steve Webb is calling on the Government to address the plight of South Gloucestershire students who face a grim start to the new term without the funds needed to support their studies.

The Student Loans Company (SLC) is responsible for the applications of more than a million loans each year nationwide, but widespread failures in the current academic year have left tens of thousands of students financially stranded up to 6 months after they should have received their first instalment. The MP said he had intervened personally on behalf of large numbers of local young people who had not received any payments.

For many students, another term without a loan instalment will bring mounting overdraft and credit card charges, hardship, and even the prospect of postponing or cancelling studies. Poor information from the company responsible for administering the loans is exacerbating the problem.

Commenting, Steve Webb MP said:

"The situation is totally unacceptable. I have spoken to numerous students and their families who are facing real hardship and stress because of delays in getting their money through. Some have had to drop out of studies completely or take out high interest loans. For students with extra needs, such as those on a low income or with disabilities, the situation is particularly serious.

"Instead of resolving the situation, ministers have blamed the Student Loans Company, whilst the company has failed to accept responsibility. The situation needs to be resolved before more students find their studies disrupted. We need to know why this company has failed to provide what it promised, and ministers need to explain why they failed to act to resolve this fiasco earlier."