Troubleshooters lead loan review

The government has appointed two troubleshooters to lead a review of
student loans problems, which have left tens of thousands waiting
for funds. Higher Education Minister David Lammy told MPs he was
sorry students and their families had been worried and frustrated by
poor customer service. Two independent experts have been appointed
to head an internal review into the problems in loan applications.
The Tories say it is a shambles causing " enormous distress to many
students". They tabled a debate in the Commons on the issue, after
delays in the processing of loan applications left tens of thousands
of students without their full loans and grants at the start of the
university term. 'Gone wrong' The independent experts are former
London South Bank University vice-chancellor Sir Deian Hopkin and
Bernadette Kenny of HM Revenue and Customs. Mr Lammy said the loans
problems had "had a profoundly regrettable effect on individual
students and their families". The body responsible for organising the
loans - the publicly funded Student Loan Company - had "fallen short
of public expectation" and had announced an internal review, he said.
However, external expertise would allow lessons to be learned, he
said. "The SLC itself is on record acknowledging the need for such an
exercise, but I am determined the process should involve external
challenge and expertise needed to provide a frank assessment of what
went wrong and a series of thorough proposals for the future," said
Mr Lammy. " Something has gone wrong in relation to the Student
Loans Company " David Lammy, Higher Education Minister Until now the
government had been playing down talk of problems. Mr Lammy told MPs
Labour's commitment to higher education was one of the nation's
"great success stories", but added: "We do not pretend that nothing
ever goes wrong. "Something has gone wrong in relation to the Student
Loans Company," he said. Shadow higher education minister David
Willetts said there was "widespread and deep concern" about the
financial uncertainty for students caused by the new system of loan
applications. This is the first year that students in England have
had to apply directly to the SLC instead of going through their local
councils. " Ministers have been trying to avoid responsibility for
this by hiding behind the Student Loans Company " David Willetts,
Conservatives This applies only to first year students and it is they
who have been most affected by the problems. Mr Willetts said the
Tories had called a debate on the issue at the "first opportunity"
once MPs returned to Westminster. "It is a shambles and it is causing
enormous distress to many students," he said. "Ministers have been
trying to avoid responsibility for this by hiding behind the Student
Loans Company." He said MPs had been hearing from many constituents -
students and their families - who were experiencing problems and
facing hardship. Students' complaints The SLC maintains it has dealt
with more applications than it had at this time last year, but has
apologised for the difficulties people have had in getting through on
help lines. Updating figures on students waiting to have funding
approved, David Lammy said 77 ,000 applications were still "in
processing" and 71 ,200 were not eligible or had been withdrawn. The
SLC has pledged that all students who applied "on time" will have
received all their loans and grants by the end of October. BBC News
has received hundreds of emails from students and their families.
Some complain that the SLC has lost their documents and are now
treating them as late applicants. Others complained about the money
they had to spend calling the SLC help line - because the main line
advertised was an 0845 number - a matter raised in the Commons by
the Conservatives. 'Lost keys' comments For the Liberal Democrats,
Stephen Williams said it was "absolutely vital" that lessons were
learned so there was no repeat of these problems next year. He added:
"We know universities are able to be flexible over hall fees but what
about the students who are having to pay private landlords? What
about the students who are having to pay rental deposits? "I am
particularly concerned about the non- traditional students who have
accessed university for the first time." He said such students were
the most likely to drop out because of financial worries. Mr Williams
also attacked comments by Derek Ross, deputy chief executive of the
SLC, who compared the loss of students' documentation to losing a set
of car keys. The comments should be withdrawn and he should
apologise, Mr Williams said. National Union of Students President Wes
Streeting said he was "relieved" the two independent figures had been
appointed to the review. "I hope this review will lead to a full and
frank analysis of this shambles and that the management of the SLC
will be held to account for a fiasco that has left hundreds of
thousands affected by late payments, lost documentation and a
miserable start to their first term at university," he said.