More concerns over student loans system

Some students have had problems with loan applications

Tory shadow university and skills secretary David Willetts has challenged the government over claims of continuing delays processing student loan applications reminiscent of last year's Education Maintenance Allowance and national curriculum fiascos.

He demanded business secretary Lord Mandelson seek assurances about reports the system is experiencing problems processing applications and handling enquiries from worried students and their parents.

Student Finance England, run by the Student Loans Company, has taken over the processing of new applications from local authorities in England.

The Department for Business, Innovation and Skills said it has received complaints about delays handling telephone enquiries, and higher education minister David Lammy is in daily contact with the company, who are keeping him informed.

The firm has said some people are experiencing delays, but these are related to volumes of calls to its helpline and not due to problems with its system.

Willetts told Mandelson in a letter he is concerned because he is receiving letters and emails on a daily basis from students and their parents finding it hard to get accurate information about student support applications.

He said the new arrangements "do not appear to be working properly", adding: "There is a clear and substantial risk that new students will face serious problems at the start of the new university term."

He complained of lack of information about whether an application had started to be processed, insufficient information about the receipt and location of personal documents, repeated web site failures, with a lack of response from the company's helpline and an absence of accurate information about students' financial entitlement

He asked Mandelson: "Are you able to reassure all young people starting university this autumn who applied before the deadline that they will receive their full loan and grant entitlement at the start of the new term?"