Student loan applications will be made entirely online from 2008, the government announced this week.

Administration of applications will be handled centrally rather than by local education authorities as they are at the moment, and all higher education applications will be electronic, Minister for Lifelong Learning Bill Rammell told the Commons.

The plan aims to reduce costs and will affect new students applying for loans from September 2008. It follows the review of the delivery of financial support to higher education students announced by former education secretary Ruth Kelly.

The principles underlying the report were that student finance delivery arrangements should

include faster decisions once the applications have been made, timely payments when courses start and accurate repayments when due.

Rammell told MPs there is ‘an opportunity to use new technology to provide a radically better service’, which would create a more uniform service providing faster decisions and payments, with high-quality information, guidance and advice and more personalised support for those who need it.

He said the new service will include an online financial calculator providing information on entitlements and comparing bursaries from different higher education institutions.

The existing Student Loans Company (SLC) will run the online application process and the minister promised the government will carefully manage the transition to the new customer-focused service for those entering higher education in the 2009-10 academic year.

Rammell said his department would engage students in detailed design work and liaise closely with both the SLC and local government to ensure a smooth transfer of functions to the company and maintenance of a good service to customers.

What do you think? Email us at feedback@computing.co.uk

Further reading

Student loans delays go on

Student loans problem fixed

source: www.vnunet.com