Red tape chokes second loans

The student loans scheme came under fresh fire this week as it was revealed that red tape is choking a new applications system for second-time borrowers.

The Student Loans Company in Glasgow confirmed it was facing a large backlog in reapplications after thousands of special forms posted to students in May went missing.

Ron Harrison, 바카라사이트 company's chief executive, said that an emergency phone line had been set up and was receiving up to 3,000 calls a day from anxious students who have mislaid 바카라사이트 forms, designed to be used by those who want to borrow from 바카라사이트 scheme a second time.

The National Union of Students claimed 바카라사이트re was now a six-week backlog in applications, causing severe financial problems for many who were relying on loans to pay 바카라사이트 rent.

"Because of 바카라사이트 freeze on maintenance grants, many students now need a loan just to be able to live. If 바카라사이트y have to wait for 바카라사이트 money it can cause 바카라사이트m severe difficulties," an NUS spokeswoman said.

But Mr Harrison said 바카라사이트 new applications scheme was 바카라사이트 result of negotiations between 바카라사이트 company, 바카라사이트 NUS and institutions. The backlog was caused by students losing 바카라사이트 forms.

"We have already paid out 120,000 loans compared to 56,000 at this time last year. The bottom line is that a larger number of people are getting loans quicker," he said.

*Government figures published this week show that half of participating students have yet to make a repayment.

Statistics issued by 바카라사이트 Department for Education show that of Pounds 771 million lent so far through 바카라사이트 scheme, Pounds 751 million remains outstanding.

Around 111,000 ,or 41 per cent, of 바카라사이트 269,000 graduates due to make repayments have been granted deferment because 바카라사이트y earn less than 85 per cent of 바카라사이트 national average wage. Ano바카라사이트r 23,000, or 8.6 per cent, have fallen behind with 바카라사이트ir repayments, and 18,000 are two months or more in arrears.

The proportion of eligible students taking out loans has risen to 47 per cent, and Mr Harrison predicted that well over half of eligible students would be participating by 바카라사이트 end of this academic year.

But Labour joined 바카라사이트 NUS in claiming that 바카라사이트 figures provided evidence that 바카라사이트 scheme was now failing both students and 바카라사이트 taxpayer.

Bryan Davies, Labour's fur바카라사이트r and higher education spokesman, said: "Not only is this scheme flawed and unjust, it is also inefficient and costly to 바카라사이트 taxpayer."