26 June 2000

FARREN URGES STUDENTS TO GET LOAN APPLICATIONS IN ON TIME

"Students seeking student loans for the coming academic year should get their applications in now if they want to make sure they get their money in time," the Minister for Higher and Further Education, Training and Employment, Dr Sean Farren said today.

The Minister said: "It is vitally important for all students returning to, or beginning, higher education courses in the coming academic year, to make sure that they provide all relevant information to their local Education and Library Boards and do so as quickly as possible.

"That will allow two things to happen - it will enable the students to look carefully at their finances and work out how much they might need to borrow, and it will give the relevant Board and the Student Loans Company plenty of time to ensure that cheques are available at the start of term."

Dr Farren stressed that there is no need for students to wait until their examination results are known before sending their application.

He added: "The crucial thing is to get those applications in now so that late payments, and thus the chances of hardship for students are reduced to an absolute minimum. Obviously there can be no 100% guarantees in this regard, but I know the Boards and Student Loans Company will do all they can to make sure students get their money on time and I will be taking a keen interest in trying to make sure that happens.

"Finally, I want to stress that the Review which I instigated into student support earlier this year is progressing well and is now considering the views expressed during the public consultation exercise. This call for prompt applications in no way affects the Review, nor does it in any way pre-judge what its outcomes might be - it is simply about making sure students get their money on time."

NOTES FOR EDITORS:

The system of delivering student loans involves three partners - the Education and Library Boards, the Student Loans Company (SLC) and the student.

In the first instance, students who want a loan apply to their local Education and Library Board. The Board then determines a student's eligibility, assesses the maximum amount that can be borrowed and notifies both the student and the SLC.

The student must then decide how much of his/her loan entitlement he/she wishes to borrow and then notify the SLC of that amount. On receipt of this notification the SLC will prepare an appropriate cheque (loans are normally paid in instalments each term) and send it to the higher education institutions for collection by the student at the beginning of the course.

Depending on their circumstances, students may be entitled to loans up to a maximum of £4,590 (when studying in London), £3,725 (when studying elsewhere) and £2,950 (when studying whilst living with their parents).

Students are not expected to repay the loans until they have graduated and earn at least £10,000 per year. Once they do gain such employment, they should repay 9% of the balance of their income over the £10,000 figure on an annual basis until the loan is cleared eg a student who earns £12,000 a year will be expected to repay 9% of £2,000 which works out at £180 over the year.

For further information please contact Simon Burrowes or Kevin Mulhern on

028 90257790/2 or 0850 976067/0788 1550849.