Student loans 'could be delayed again this year'

Some students had to leave university after running out of money

The government says it's going to investigate the Student Loans Company to check if it is still up to its job.

It's after last year's delays which left thousands of students in England short of cash for months.

An official report says more than half of first years had to start without their money last year and some had to quit because of it.

Now there are question marks over whether the Student Loans Company will be able to cope with double the number of applications this year.

The government watchdog The National Audit Office (NAO) says in its report that "the Student Loans Company provided an unacceptable service last year".

Still waiting

Luciano is a student at Hull and is still waiting for her student loan and student grant.

She said: "I have to borrow money from my mum who is single parent. She hasn't got enough to support me really.

"If I don't get this cash soon it will affect my course grades. I need to buy the right studying equipment."

Last year, worried students couldn't even get through on the phone to ask about their money.

There were around four million calls made to the Student Loans Company with around 87% of those going unanswered.

Money worries

Ralph Seymour-Jackson is the Chief Executive of the Student Loans Company.

He says things will get better this year.

He said: "We're really sorry for the problems and delays students experienced last summer.

"We've put right those problems. We will be able to cope.

"I can tell students if they apply by the deadline at the end of June I will make sure they have their money at the start of term."

The government says an extra £16 million will be ploughed into the Student Loans Company to make sure it can offer a better service this time round.

The National Union of Students President, Wes Streeting, says there can't be a repeat of last year.

He said: "Students would feel sick to their stomachs if there was a repeat of last year's delays."