More student loan chaos on the way

December 9, 2009 2:45 PM

Greg Stone, prospective Lib Dem MP for Newcastle East, has warned university applicants that the current chaos affecting administration of student loan payments to thousands of students who have had to wait months for their loan may be repeated next year.

It has been announced that the window for applications for loans for students beginning courses in September 2010, which was supposed to start earlier this week, has been postponed indefinitely as the crisis hit Student Loans Company tries to sort out the mess. The company was the subject of a damning investigation report earlier this month and many have called for resignations over their bureaucratic incompetence.

Greg Stone said "I am prepared to accept that the SLC's first priority at present should be addressing the shambles they have made of this year's loan payments, and making sure those still waiting are helped as quickly as possible, but I am concerned that their decision to postpone applications for next year will lead to further student loan chaos next autumn. If the SLC cannot inspire confidence in their handling of the situation, the management must resign."