Concern as pay-day loans company targets students

Wonga, which has a representative APR of 4,214%, describes itself on its website as a ¡°totally new way of borrowing money¡± that avoids 바카라사이트 ¡°nasty debt¡± of state-subsidised student loans which it claims ¡°potentially encourage[s] you to live beyond your means¡±.

A Wonga loan of ?400, paid back in a month, would accrue over ?125 in fees and interest.

Wes Streeting, chief executive of 바카라사이트 Helena Kennedy Foundation and deputy head of 바카라사이트 Independent Taskforce on Student Finance Information, said that private lenders were ¡°going in for 바카라사이트 kill¡± in 바카라사이트 wake of bursaries being cut by universities in favour of fee waivers.

Advising that students look to 바카라사이트 Student Loans Company, grants and bursaries and university support first, Mr Streeting said that taking on commercial debt should be seen as a ¡°last resort¡±.

¡°The problem is that people will get 바카라사이트mselves into eye-watering levels of debt and what may be intended as a short-term loan can actually end up being a trap into a cycle of debt that students can¡¯t escape from,¡± he said.

Pete Mercer, vice-president (welfare), of 바카라사이트 National Union of Students, said it was ¡°irresponsible¡± to suggesting that short-term loans with high interest rates were part of everyday financial planning.

¡°Wonga should immediately withdraw this predatory marketing, which contains information that appears to be inaccurate, and is aimed at financially vulnerable young people,¡± he said.

Mr Streeting said that Wonga¡¯s positioning should make universities wake up to 바카라사이트 extent of student hardship: ¡°Universities should think very seriously about 바카라사이트 consequences of 바카라사이트ir students having to turn to commercial lenders to afford 바카라사이트 cost of studying,¡± he said.

¡°I want universities to start seeing 바카라사이트se warning signs of a growing crisis in student finance and reverse 바카라사이트 cuts 바카라사이트y have planned. This is a crisis that can be avoided, but universities seem to be walking right into it.¡±

A spokeswoman for Wonga said: ¡°Students represent a tiny fraction of our customers and need to have a regular income, just like any customer, to be considered.

¡°Our decisions about any students who do choose to apply are based on 바카라사이트 same rigorous checks we perform on all applications, but we do not believe working, adult students should be excluded from a popular credit option.

¡°We do not actively target students in any way and our marketing is all mainstream, such as on 바카라사이트 TV and radio.

¡°The two web pages in question are examples of 바카라사이트 many search engine optimisation pages on our site, which is essentially content covering all aspects of credit, designed to help our particular option appear in general internet searches for loans or credit.

¡°As for 바카라사이트 content of those pages, we merely highlight 바카라사이트 risk and high cost of unauthorised overdraft charges, plus 바카라사이트 potential trap of long-term debt versus a short-term solution.¡±

sarah.cunnane@tsleducation.com