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Injin

Tens Of Thousands Face Students Loans Chaos

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http://www.timesonline.co.uk/tol/life_and_...icle6831669.ece

Tens of thousands of students could start the academic year with no funding and unable to register at university because the loans company is in crisis and struggling to cope with a deluge of applications

Weeks before the start of term, 150,000 applications out of almost a million still have not been processed.

Many students have no financial support in place and no way of knowing if and when their loans and grants will be awarded. It is taking students days to get through on the helpline. Instead, they go straight to a recorded message apologising for the problem. Those who do manage to speak to an adviser have reported delays and missing paperwork.

A record 623,389 students are going to university this year, fuelled by a surge of late applications through the clearing system, and their claims for finance have swamped the Student Loans Company. For the first time, new applications are being handled centrally by the SLC rather than by local authorities. But local authorities are handling applications of returning students and some are taking submissions from new students, to forward to the SLC, which has taken on only 120 extra staff to cope with the million applications for grants and loans.

Students need a letter proving that they have funding in place before they can enrol at university, and many institutions are already beginning registration for the autumn term.

A spokeswoman for the University of the Arts London said: “We are expecting a lot of people to turn up at the end of September without knowing how they are going to pay their tuition fees or whether they are going to have any money to live on.â€

Those most in need of help could be worst hit as means-tested applications take longer to process. Phil Willis, the MP who chairs the Innovation, Universities and Skills Select Committee, said: “It’s chaos . . . a huge, bureaucratic nightmare. The SLC doesn’t have the staff or the software to deal with it.†David Willetts, the Shadow Universities Secretary, has written to Lord Mandelson, who has responsibility for universities, saying that he is receiving letters and e-mails every day from students and parents finding it hard to obtain accurate information.

A Department for Business, Innovation and Skills spokesman said: “The loans company has assured us that all those who have applied on time for finance will receive this at the start of the next academic year.â€

Banana republic stuff.

Edited by Injin

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Ideally there would be fewer university students, it should be harder to get into uni and there should be higher standards. We don't need hundreds of thousands of people getting into debt to fuel 3 years of fun. Yes for many of them they will work hard and take it seriously. But for others its a choice bourne out of avoid work or thinking it is essential.

And I've been to university so I am not against the system per-se. I just know that I was passionate about the subject and worked hard, whilst many people saw it as a jolly.

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All due to more than usual numbers applying?

Yeah Right...!

It's because the market for securitized Student Debt has collapsed, just like the Residential mortgage securities market has.

The "wholesale" funding has gone.

The Ponzi Debt system has collapsed, pure and simple.

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Ideally there would be fewer university students, it should be harder to get into uni and there should be higher standards. We don't need hundreds of thousands of people getting into debt to fuel 3 years of fun. Yes for many of them they will work hard and take it seriously. But for others its a choice bourne out of avoid work or thinking it is essential.

I can't argue with that. Although the loans that people took out when I was at uni are actually reducing in line with the negative RPI.

Unfortunately, I paid all mine off a few years ago.

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All due to more than usual numbers applying?

Yeah Right...!

It's because the market for securitized Student Debt has collapsed, just like the Residential mortgage securities market has.

The "wholesale" funding has gone.

The Ponzi Debt system has collapsed, pure and simple.

It was always going to be impossible to find the 20 grand needed to send each one of them to uni. Especially with a target of sending half of our young population to university. :lol: They have totally diluted the value of a degree. What a complete joke this country now is.

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150,000 students out of 1,000,000 with no money - just give it some time and the rest will eventually have no money either! Is education, along with housing and pensions, in effect becoming another ponzi scheme?

If the degree does not convert to a job, and a decent paying one at that, then it's going to lead to more trouble for the country.

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Pretty much the exact same thing happened to the LSC over EMA payments, Little Eddie Balls decided his mates should have the contract entirely, they didn't have a clue how to cope with it all, and failed miserably. Of course the LSC got all the blame despite telling Little Eddie it was a horrible mistake at the time, and then sorting it all out once Eddie's mates had taken their exit payments and scuttled back into the undergrowth.

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Guest absolutezero
Hardly.

Injin suffers from confirmation bias.

He believes the state is about to fail and we're going to hell in a handbasket. :rolleyes:

Any small shred of 'proof' and he will jump on it.

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Sigh.

Students need a letter proving that they have funding in place before they can enrol at university, and many institutions are already beginning registration for the autumn term.

And every year lots don't and every year we wave them through anyway and it gets sorted by Christmas.

Although I would say the situation is a bit more tense re: overseas students, 'home' students don't need to worry.

:rolleyes:

I'm sure someone will now have a moan outraged that we don't behave like tin-pot Hitler jobsworths. -_-

Edited by Cogs

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Universities will not accept hollow promises and non-payment.

This year is going to see many of the UK's universities over subscribed by a significant margin and a hell of a lot of bad press.

Well, it's an awful shame for these kids, especially those from impoverished backgrounds. Looks like the bank of mom and dad, or Mr Plastic will have to ride to the rescue.

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Ideally there would be fewer university students, it should be harder to get into uni and there should be higher standards. We don't need hundreds of thousands of people getting into debt to fuel 3 years of fun. Yes for many of them they will work hard and take it seriously. But for others its a choice bourne out of avoid work or thinking it is essential.

And I've been to university so I am not against the system per-se. I just know that I was passionate about the subject and worked hard, whilst many people saw it as a jolly.

I actually don't mind those people who see it as a jolly. What I object to is the sort of Universities who hire Oxford graduates who then tell their second year psychology students that if they don't get the result that they want from the sample just add to the sample until they do. Unbelievable. Less places, better quality, or a return to trades training, so that you can actually find a mechanic under 50 who knows what the bits in teh car are and what can go wrong with them and how to fix them (alternatively of course there were the polish, but they have gone home)

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My daughter is off to Uni next week.

She got a place through clearing, having not originally planned to go at all.

We applied for a loan when she was accepted, and, 2 weeks later it has been approved.

Now, there are a lot of doommongers out there, and having read the reports I rang the uni and they said, "dont worry, she can still start. If she cnt afford rent there is a £50 per week emergency fund to assist that will need to be paid back when loan comes through"

So, no problem really - but people do seem to like to make a fuss!

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I had no parental contribution when I studied engineering at Brunel 10 years ago. I left with 20k of debts and later became bankrupt when an accident meant I was out of work for a year and so unable to pay off my debts.

I've since met graduates with 30k debts.

When I was at Brunel university just 10 years ago, rent was £50. I note they now charge almost double that for the same rooms. There's also other little costs like laundry, I paid 50p to use a washing machine, they now charge £2..

I don't see the point in university education on the scale we have it. Certainly it didn't benefit me and I got a 2:1 from a supposedly prestigious engineering degree - The Special Engineering Program (SEP). Though if I had been less naive I would have noticed that China was being given ALL of our manufacturing.

I was the first graduate in my family. The home my mother lives in, a 16k a year book-keeper, is the kind of home I can no longer aspire to own. She bought it for 50k, it's now worth 160k. Apparently.

Degrees are ten a penny.

Edited by revolutionNOW

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I really have no idea why we have this aim of sending 50% of kids to uni , it just means what they end up with is worse than useless, A couple years ago I was told I could not hire any uk graduates for my junior staff, they all had to be hired from the indian IIT's or IIM's, so I had to schlep around armpits like Ahmnebad and calcutta rather than oxbridge, the things the indian schools do well is instill competition to be top of the class as all the exams they have rank in percentiles rather than a meaningless dumbed down grade. What employers need to know is really how smart the candidate is compared to his or her peers.

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I had no parental contribution when I studied engineering at Brunel 10 years ago. I left with 20k of debts and later became bankrupt when an accident meant I was out of work for a year and so unable to pay off my debts.

I've since met graduates with 30k debts.

When I was at Brunel university just 10 years ago, rent was �50. I note they now charge almost double that for the same rooms. There's also other little costs like laundry, I paid 50p to use a washing machine, they now charge �2..

I don't see the point in university education on the scale we have it. Certainly it didn't benefit me and I got a 2:1 from a supposedly prestigious engineering degree - The Special Engineering Program (SEP). Though if I had been less naive I would have noticed that China was being given ALL of our manufacturing.

I was the first graduate in my family. The home my mother lives in, a 16k a year book-keeper, is the kind of home I can no longer aspire to own. She bought it for 50k, it's now worth 160k. Apparently.

Degrees are ten a penny.

Are you still in engineering? (What type?)

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Guest skullingtonjoe
I had no parental contribution when I studied engineering at Brunel 10 years ago. I left with 20k of debts and later became bankrupt when an accident meant I was out of work for a year and so unable to pay off my debts.

I've since met graduates with 30k debts.

When I was at Brunel university just 10 years ago, rent was �50. I note they now charge almost double that for the same rooms. There's also other little costs like laundry, I paid 50p to use a washing machine, they now charge �2..

I don't see the point in university education on the scale we have it. Certainly it didn't benefit me and I got a 2:1 from a supposedly prestigious engineering degree - The Special Engineering Program (SEP). Though if I had been less naive I would have noticed that China was being given ALL of our manufacturing.

I was the first graduate in my family. The home my mother lives in, a 16k a year book-keeper, is the kind of home I can no longer aspire to own. She bought it for 50k, it's now worth 160k. Apparently.

Degrees are ten a penny.

Yep - just wait for the old `degree bubble` to go pop. They`ll be less value than a bogroll (imagine the paper cuts if you tried wiping your backside with a degree!) OW! :P

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My daughter is off to Uni next week.

She got a place through clearing, having not originally planned to go at all.

We applied for a loan when she was accepted, and, 2 weeks later it has been approved.

Now, there are a lot of doommongers out there, and having read the reports I rang the uni and they said, "dont worry, she can still start. If she cnt afford rent there is a £50 per week emergency fund to assist that will need to be paid back when loan comes through"

So, no problem really - but people do seem to like to make a fuss!

Did you tell your daughter this was a good idea - becoming indebted before she even starts work? Do you think she'll end up resenting you if it all goes wrong?

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Did you tell your daughter this was a good idea - becoming indebted before she even starts work? Do you think she'll end up resenting you if it all goes wrong?

She has a specific career in mind - to do which, you need to have a degree in that subject otherwise you will always be on the bottom rung.

She is fortunate in that, although she is taking out the loan (she needs to learn how to budget, and a student loan is as close to 'no cost' loan anyone can have), I am able to support her if she needs it.

I work with many graduates, and they have all proved to be (despite my initial sceptisism), extremely knowledgeable enthusiastic members of my team.

I am sure that uni is not right for many people (me for example!), however, for those who have a specific goal, and are able to focus, I am sure it is one of lifes great experiences.

In answer to your question, I have no fears of her resenting me - firstly as I have not pushed her into anything, and secondly because we have a very strong relationship.

Thanks for your concern though........

:rolleyes:

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