Norfolk students in loan crisis

Universities throughout the region are being forced to bail out struggling students with emergency funding because of delays to loans.

By MATTHEW SPARKES

Universities throughout the region are being forced to bail out struggling students with emergency funding because of delays to loans.

Tens of thousands of students are still waiting for their first loan payments as the Student Loans Company (SLC) struggles to cope.

A recent survey found three- quarters of universities were making more hardship payments to students compared with last year, with the majority blaming the rise on problems with the loans system.

The UEA has seen a 131pc increase in the value of loans this year over last and a 173pc increase in the number of students receiving loans.

Although part of this rise can be attributed to similarly late payments to NHS students, other institutions around the region have seen even higher increases.

Vicky Warmisham, of University Campus Suffolk, handles applications for emergency financial support. She said that so far this year 163 students had applied for short-term loans, totalling £81,986. Last year there was less than half that number of applications.

Norwich University College of the Arts is in a similar position, having seen a 250pc increase in applications for financial help.

This year the university has received more than 100 applications for a total of £25,000, while last year just 30 asked for support.

Angela Robson, deputy principal for finance and resources, said that the delays seemed to particularly affect those students who had applied for their loans online.

Ministers have ordered an inquiry as 119,000 students are still struggling to cope without funding.

This year was the first time freshers applied directly to the SLC for grants and loans and the new arrangement has been beset by problems.

Some 70,000 students have not received payments because their attendance at university or college has not yet been confirmed.

The National Union of Students has called for the chief executive of the Student Loans Company to resign after news that almost £2m was paid out to staff in bonuses in 2009.

Natasha Barnes, communications officer at the UEA Student's Union, said it was unacceptable that staff at the SLC were being rewarded.

"It is extremely worrying that staff at the Student Loans Company have been receiving five-figure bonuses whilst students are still waiting to receive their loans in order to pay for their rent and other essentials," she said.

"A number of UEA students are struggling to even afford books for their course due to the huge delays in loan payments caused by the Student Loans Company."

"It is unacceptable that our students are made to suffer whilst staff at the SLC are rewarded for 'hard work'."

A statement from the Student Loans Company said: "We are working hard to ensure that this does not happen again next year and are working on a number of measures, including offering clear advice and guidance on application deadlines, simplifying the application process and increasing our call handling capacity."