Online glitch hits student loans

By Gary Eason
BBC News Online education editor

For now, only paper applications can be made

Prospective students may have missed a deadline for applying for a loan because of delays to a new online application process.

The Student Loans Company had said the service would be available before now.

But it has been delayed - with no firm start date yet being given.

One student, Laura, said: "Many students, including myself, were depending on that website to make their loan applications and have as a result missed essential paper form deadlines."

The loans company has told BBC News Online that students who still put in paper applications "will not necessarily receive their loans late".

No explanation

Laura said the website first promised that the online application process would be available in April.

"Then as April approached it became end of April, then mid-May, now it says 'Update... Update... This summer we will be announcing the launch date for applying on-line' without any explanation at all!"

That is on the front page of the loans company's website. But someone who clicks on "I want to apply" is told:

Should students suffer due to their broken promises and IT failures? Student Laura

"If for Academic Year 2004/05 you are applying for a loan or fees support, then instead of applying on paper you may be able to apply on line through Student Finance Direct.

"Whether you are applying for the first time or have applied in previous years, this facility is planned to be available from mid-May 2004." This was still there on Friday 21 May.

"Not to sound too much like a teenager but it's not fair," said Laura.

"I just feel that an error like this by the Student Loans Company should not be swept under the rug.

"Should students suffer due to their broken promises and IT failures?"

This is not an ideal situation and we are obviously sorry for the inconvenience Student Loans Company

So far the "paper form" deadline that has passed relates to those who have decided to apply only for the "non-income assessed" loan - the three-quarters of the full amount that is not means-tested. That was 30 April 2004.

The Student Loans Company said in a statement: "This is not an ideal situation and we are obviously sorry for the inconvenience.

Students who did not want an income assessment and who had already missed the deadline "will not necessarily receive their loans late".

"We will, along with our colleagues in LEAs, make every effort to clear these late paper applications in good time."

People who are renewing their application for another year have to do so by 28 May. New applicants have to apply by 2 July.

"Students who had hoped to apply online will need to put in paper applications instead but they will still get their loans in time," the loans company said.