100,000 students set to face early debt woes

18/09/2009

As many as 100,000 British students look set to fall into debt just days into the start of the term as they struggle to obtain economic support.

With university applications having risen by 17 per cent this year, the Student Loans Company (SLC) is struggling to process grants and loans, meaning many of the most vulnerable youngsters may have to rely on their parents for support for the foreseeable future.

It is estimated that around 50,000 students are likely to start university over the coming weeks having received no money at all, while a further 50,000 will receive only partial payments for the time being.

This situation likely to lead to a marked rise in student debt before lectures have even started.

However, the SLC has downplayed the delays, with chief executive Ralph Seymour-Jackson stating that "situation is not perfect, but it's reasonable".

Earlier this week, a report from the BBC showed that students feel that the SLC is in "shambles".

"Students and their families have been sending the BBC News website increasingly anxious e-mails over delays in arranging loans and grants and difficulties in getting a response from helplines," the broadcaster revealed.

"These include mature students with children who are worried about childcare payments and parents who see their children's arrival at university as being clouded by fears over funding."

Tags; Debt Management and Banking,

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