Tag: SLC

Two directors of Student Loans Company resign
Two directors of the crisis-hit Student Loans Company have resigned over errors that led to tens of thousands of students starting term with no cash this autumn. Wallace Gray, who was in charge of the company’s computer network as IT director, and Martin Herbert, director of marketing and customer services, have left the company, SLC’s board said today. The firm’s chief executive, Ralph Seymour-Jackson, will stay.

Next year’s student loans delayed
The launch of the loans and grants service for students starting in September 2010 should have been at the beginning of this week. But the Student Loans Company says that this has now been postponed. A review of loan delays for students who began courses this autumn found “conspicuous failures”. The delays in payments facing tens of thousands of students, which have dragged on for months after the start of term, have now caused a knock-on effect for next year. The intended starting date of December 7 has been withdrawn – with no new date so far set to replace it.

Universities warn that budget cuts will be challenging
Earlier this year the government asked universities to find £180m in efficiency savings by 2011. Professor Steve Smith, president of umbrella body Universities UK, said: “The university sector has provided an excellent return on the last 12 years of public investment. “However, the sector is already absorbing considerable efficiency savings and the announcement that by 2012-2013, £600 million will be cut from higher education and science and research budgets will be extremely challenging for universities.”

Academy denounces £600 million funding cut
Alistair Darling, the Chancellor of the Exchequer, revealed in his pre-Budget report on 9 December that there will be a £600 million reduction in the higher education and science and research budgets in the two years 2011-13. The report says the savings will come from “a combination of changes to student support within existing arrangements; efficiency savings and prioritisation across universities, science and research; some switching of modes of study in higher education; and reductions in budgets that do not support student participation”.

Financial Support to Students, Statement by: David Lammy MP, Department for Business, Innovation and Skills
I am now clear that decisive action is required to change the service and that the key to this is strengthening the leadership of the Company and ensuring that the customer is at the heart of everything the Company does. The Chair of the Student Loans Company has confirmed that the senior management team of the Company will be strengthened and reorganised.

Includes a link to the Hopkin Report.

Head of Student Loans Company under pressure to resign
An independent inquiry into this year’s fiasco, which saw tens of thousands of students start term with no cash, blames the delays on “management indecision and over-optimism” as bosses failed to act when a new computer system collapsed this summer. When the problems became apparent it operated a shut doors policy, refusing to engage with student unions, universities or the press to explain the problems.