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Council in landlord student loans plea
SHEFFIELD Council leader Paul Scriven has stepped into a growing crisis over delayed student loan cheques, calling on landlords to defer beginning-of-term rent payments.
As many as 2,500 city students could be without cash as they start the new university term next week due to an increase in applications and late requests.
The Student Loans Company says it is struggling to cope with the workload and full payments may not be made until late October.
Coun Scriven said many students could find themselves unable to pay their rent if they hadn't yet received their cheques.
"I know that students and parents alike will be sick with worry as to whether they will receive their cheques on time," he said.
"The failure of the Student Loans Company to process these applications on time really is a shambles."
Coun Scriven has written to the two Sheffield universities and private providers of student accommodation calling for them to defer their rent payments.
The loans company says all students who applied on time should at least receive some of their loan soon after courses start.
The money will cover university tuition fees and some basic living expenses – but may not be enough to cover advance rent.
The Student Loans Company said there had been a 16.7 per cent rise in loan applications on last year – reflecting the increase in university applications and a surge of late applications. The rise is being linked to the recession.
Clive Macdonald at Sheffield Hallam University said: "We will do everything we can to minimise distress and disruption to our students. We will be monitoring the situation carefully and have contingency plans such as emergency loans in place, which we will invoke if necessary."
Sheffield University spokeswoman added: "Students in university accommodation who notify us that they are experiencing problems will be able to delay payment of their first instalment of rent."
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Saturday 26 May 2012
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