Computer delays hit 100,000 student loans payments

Over 100,000 students face starting university without any money because of delays in processing loan applications caused by a new computer system.

The £30m system introduced by the Student Loans Company allows local authorities to process loan applications and send the information online to the SLC for a decision.

But some councils claim there have been problems logging onto the system and that applications are taking up to seven weeks to process instead of three under the old procedures.

The delay will not, however, affect the half a million students who applied for loans before the official 2 July deadline but those who only opted to take up university places through clearing or at the last minute face having no money for essentials such as course fees, rent and food.

Ralph Seymour, CEO of the SLC, admitted to BBC Radio 4's Today programme that there have been "teething problems" with the new online system but claimed the late applications are only taking up to two weeks longer to process.