University students 'still waiting for loans'

Thu 19 Nov 2009

About 70,000 university students have still not received their student loans, according to a new study.

Research by the BBC also found that many universities are having to spend their own cash on students in the meantime.

Figures suggest that about three-quarters of academic institutions in England have so far had to bail out students because of the delays.

Universities were said to be paying out an average of £44,000 to cover students' living expenses such as food and rent.

The Conservative Party has warned that the late payment of student loans is hitting those from poorer backgrounds particularly hard, as well as people with disabilities.

Shadow universities and skills secretary David Willetts called on the government to take responsibility for the problem and ensure those who are starting university in January get their money on time.

He added that if students do not receive their loans, many will be forced to drop out.

Catherine Wilson, a partner at Winckworth Sherwood, said: "The timing of these financial problems could not be worse as the government has announced it will review lifting the cap on tuition fees whilst continuing to stress the importance of higher education becoming more socially inclusive.

"Concerns about finances seem likely to have a negative impact upon disadvantaged students who are more likely to opt out of higher education."