In 2009, nearly 250,000 students were left without cash before the start of term, because a new system brought about delays.

The student loans system experienced bad times after local authorities sold the processing system of all applications for student loans and financial awards in England for 2009-2010 academic year to the Student Loans Company (SLC).

Ministers decided that a centralised service would appear to be more effective in the long-term but has reviewed the company’s competency to deliver services to students.

In a recent report, the NAO found out that SLC managed to process 46% of applications by the start of the academic year, whereasby the start of the previous academic year 63% of applications were fully processed.

However, by September nearly 241,000 student finance applications failed to be fully processed by the company.

In addition, it was revealed that it took about 12.4 weeks for an application to be processed in 2009, whereas in 2008 it took only 9.3 weeks.

According to the report, the company failed to understand its customers, many of whom are young people with the lack of experience and knowledge who need to be given advice when it comes to financial matters.

Consequently, the NAO informed that the Student Loans Company (SLC) didn’t succeed in providing efficient service last year.

At the moment, the NAO has concerns that the SLC will prove to be cost-inefficient again this year and it doesn’t have confidence in the ability of the company to cope with a growing number of student finance applications this academic year.

Ralph Seymour-Jackson, CEO of SLC expressed his regret about the students having financial problems last year.

He explained that it was the first stage of the long and difficult process of making student finance in England centralized and claimed that lessons had been learned.


Articles

The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.