The former head of the medical helpline NHS Direct has taken over as interim chief executive of the embattled Student Loans Company.
Ed Lester has taken up the position of head of the SLC on a temporary basis. Professor Deian Hopkin, former vice chancellor of London South Bank University, has been appointed interim chair.
The management changes follow the resignation of chief executive Ralph Seymour-Jackson and chair John Goodfellow.
Last month, a PricewaterhouseCoopers audit commissioned by the previous government warned that the SLC would be unable to improve its ‘chaotic’ systems in time for the next academic year.
It prompted universities minister David Willetts to call for the resignation of Seymour-Jackson and Goodfellow.
Last September, the SLC took over responsibility for student loan applications – but was unable to process them in time for the start of the academic year.
Business, Innovation and Skills Secretary Vince Cable said: ‘The Student Loans Company needed fresh leadership and now it has it. We have appointed an interim chair who, together with the new chief executive, will deal with the challenges they face.
‘They need to rebuild confidence in the service by providing the very best service this year.’
Source
Thursday, July 15, 2010
Monday, June 28, 2010
A Call to Reform Student Loans
I felt like the worst boss ever for having our intern orientation on the Saturday of Memorial Day weekend. But, I changed my mind when I opened my copy of The New York Times early that morning and there, on the front page of the business section, was Rob Lieber's article, "Placing the Blame as Students Are Buried in Debt." Standing in front of our summer interns I passed out copies of the article saying simply, "this is why we do what we do."
Every student has something in mind when they hear the phrase "dream school." Whether it's a childhood ambition of following in a family's footprints to Harvard or attending their state university, kids usually don't have the looming threat of debt from loans on the brain. Every student wants to be able to attend the school of their choice. It is an unfortunate reality that students and their parents need to worry about navigating the confusing, expensive, and often predatory educational financing process.
In his article, Lieber blames the student (Cortney Munna), the family (Cortney's mother), the university (NYU) and the bank (Citibank) for the accumulation of Ms. Munna's student loans that has put her in $97,000 debt. But, Lieber never addresses the real issue: the need for system-wide reform.
Instead of playing the blame game, it is a moral imperative for us as a society to adopt a more reasonable system that provides equal access to education, restoring meritocracy in the educational financing process.
At KR Student Loans, a nonprofit, we're building a social lending platform where anyone in the country can directly lend to students of specific universities, based on the student's profile on our website. Above all, the loans are made extremely simple and easy for students to understand. But, our organization is only part of the solution.
When are we as a society finally going to completely redefine the nature of educational financing? Once all of us begin to focus on truly reforming the system, students will be able finally pursue their dreams without fear of a cruel debt burden. If we don't redefine the nature of student loans, stories like Ms. Munna's will continue to define the system of educational financing and financial aid.
Source
Every student has something in mind when they hear the phrase "dream school." Whether it's a childhood ambition of following in a family's footprints to Harvard or attending their state university, kids usually don't have the looming threat of debt from loans on the brain. Every student wants to be able to attend the school of their choice. It is an unfortunate reality that students and their parents need to worry about navigating the confusing, expensive, and often predatory educational financing process.
In his article, Lieber blames the student (Cortney Munna), the family (Cortney's mother), the university (NYU) and the bank (Citibank) for the accumulation of Ms. Munna's student loans that has put her in $97,000 debt. But, Lieber never addresses the real issue: the need for system-wide reform.
Instead of playing the blame game, it is a moral imperative for us as a society to adopt a more reasonable system that provides equal access to education, restoring meritocracy in the educational financing process.
At KR Student Loans, a nonprofit, we're building a social lending platform where anyone in the country can directly lend to students of specific universities, based on the student's profile on our website. Above all, the loans are made extremely simple and easy for students to understand. But, our organization is only part of the solution.
When are we as a society finally going to completely redefine the nature of educational financing? Once all of us begin to focus on truly reforming the system, students will be able finally pursue their dreams without fear of a cruel debt burden. If we don't redefine the nature of student loans, stories like Ms. Munna's will continue to define the system of educational financing and financial aid.
Source
Tuesday, June 15, 2010
Studentloans.gov – Federal Student Loans + Direct Loans for Students
There are many documents that need to be checked before applying for a student loan. What a student can do through this site is, manage their loan totally with all information and direction.
There are other resources like student aid which also has similar direct loan facilities that would help a student get a loan. The U.S department of education is making it easier for students and adults to pursue their studies right up-to their graduation and not just high school.
This helps in avoiding loans from different arenas which mostly has a huge pay back amount in the form of interest or hidden fees and costs.
Source
Monday, March 15, 2010
Tough test to end student loan disgrace
John Goodfellow must be ruing the day he left the calm of Skipton Building Society, where he was chief executive, for a 'quiet' life of semi-retirement, picking up the occasional, lucrative non-executive position to keep him in the grand style to which he had become accustomed.
Goodfellow, 62, left Skipton at the end of last year after 17 years at the helm - and he was sent on his way with generous compensation of £781,000.
With agreement from the society to fund his pension pot this year - as well as permission to access his £2 million pension fund early next year without any early retirement penalties - no one would have been surprised if he had called it a day and put his feet up.
But Goodfellow had no intention of remaining idle, which explains why he now finds himself trying to sort out the administrative nightmare that is the Student Loans Company.
Goodfellow has been non-executive chairman of SLC for just over a year and he has spent most of his time fighting fires.
In autumn the SLC went into meltdown as it failed to process about 100,000 loans in time for the start of the 2009-10 academic year, leaving many students cashstrapped and relying on hardship funds.
More...
100,000 students start term without loans (thisismoney.co.uk)
'No student loans for middle classes' (thisismoney.co.uk)
About 60,000 loans have yet to be processed and while the SLC is apportioning blame, all the evidence suggests that it remains administratively challenged.
This month, Professor Sir Deian Hopkin published a damning report into the SLC. He accused it of 'management indecision' and 'conspicuous failure in key areas' when its computer system failed during the summer, triggering the ensuing chaos.
These problems were perpetuated by the SLC failing to man phone lines adequately to cope with the deluge of enquiries from students - while stonewalling everyone else.
In the wake of Hopkin's coruscating report, Goodfellow apologised and promised to shake up the SLC.
Last week, evidence of this 'shake-up' emerged when it was confirmed that two directors - Wallace Gray (information and communications technology director, paid £128,000) and Martin Herbert (customer services director, paid £125,000) - had 'resigned'.
Given that it was inept customer service and failing information technology that lay at the heart of SLC's woes, such departures are hardly surprising, though it sticks in the craw that these individuals will walk away with six months' money as their reward for failure.
Yet Ralph Seymour-Jackson, £145,000-a-year chief executive and the man responsible for the overall (mis-)management of the SLC, survived, surely by the skin of his teeth.
He will be supported by a chief operating officer, yet to be appointed, responsible for 'service delivery and risk management'. Goodfellow is also looking for a director of human resources whose job will be to put the 'customer experience firmly at the heart of the organisation' - a first.
Hopefully, Goodfellow's overhaul will deliver on the grand promise he made last week, which was 'to do whatever it takes to ensure processing and payments are faster next year, so that we can deliver the service that students and their parents have every right to expect.'
Failure will certainly result in his own swift departure. Hard-pressed students and parents would expect nothing less. The SLC is a national disgrace and Goodfellow has a challenging year ahead of him righting its many wrongs.
Which financial brands should readers trust in the New Year? In light of the financial turmoil, scandals and excesses of the past two years, it's a challenging question and there are few contenders.
Most well known brands - such as RBS, HBOS, Lloyds TSB and Northern Rock - have lost the nation's trust. And given some executives of these organisations-continue to bleat about their mega-bonuses being taxed, consumer trust will remain in short supply for the foreseeable future.
Co-operative Bank, re-energised by its acquisition of Britannia Building Society, has a chance of winning over the hearts of more consumers with its mutual ownership and ethical stance. And Yorkshire Building Society, provided it can absorb Chelsea successfully, stands a chance of overtaking fellow Nationwide, not in size, but in terms of trust given the latter's many problems (mediocre service standards, et al).
But as everyone with an interest in financial services knows, today's crowd pleaser can easily become next year's bete noire. Financial Mail will continue to do its best steering you in the direction of security, value and quality service.
After all, that's what is wanted from financial firms. It shouldn't be too much to ask, should it?
Source
Goodfellow, 62, left Skipton at the end of last year after 17 years at the helm - and he was sent on his way with generous compensation of £781,000.
With agreement from the society to fund his pension pot this year - as well as permission to access his £2 million pension fund early next year without any early retirement penalties - no one would have been surprised if he had called it a day and put his feet up.
But Goodfellow had no intention of remaining idle, which explains why he now finds himself trying to sort out the administrative nightmare that is the Student Loans Company.
Goodfellow has been non-executive chairman of SLC for just over a year and he has spent most of his time fighting fires.
In autumn the SLC went into meltdown as it failed to process about 100,000 loans in time for the start of the 2009-10 academic year, leaving many students cashstrapped and relying on hardship funds.
More...
100,000 students start term without loans (thisismoney.co.uk)
'No student loans for middle classes' (thisismoney.co.uk)
About 60,000 loans have yet to be processed and while the SLC is apportioning blame, all the evidence suggests that it remains administratively challenged.
This month, Professor Sir Deian Hopkin published a damning report into the SLC. He accused it of 'management indecision' and 'conspicuous failure in key areas' when its computer system failed during the summer, triggering the ensuing chaos.
These problems were perpetuated by the SLC failing to man phone lines adequately to cope with the deluge of enquiries from students - while stonewalling everyone else.
In the wake of Hopkin's coruscating report, Goodfellow apologised and promised to shake up the SLC.
Last week, evidence of this 'shake-up' emerged when it was confirmed that two directors - Wallace Gray (information and communications technology director, paid £128,000) and Martin Herbert (customer services director, paid £125,000) - had 'resigned'.
Given that it was inept customer service and failing information technology that lay at the heart of SLC's woes, such departures are hardly surprising, though it sticks in the craw that these individuals will walk away with six months' money as their reward for failure.
Yet Ralph Seymour-Jackson, £145,000-a-year chief executive and the man responsible for the overall (mis-)management of the SLC, survived, surely by the skin of his teeth.
He will be supported by a chief operating officer, yet to be appointed, responsible for 'service delivery and risk management'. Goodfellow is also looking for a director of human resources whose job will be to put the 'customer experience firmly at the heart of the organisation' - a first.
Hopefully, Goodfellow's overhaul will deliver on the grand promise he made last week, which was 'to do whatever it takes to ensure processing and payments are faster next year, so that we can deliver the service that students and their parents have every right to expect.'
Failure will certainly result in his own swift departure. Hard-pressed students and parents would expect nothing less. The SLC is a national disgrace and Goodfellow has a challenging year ahead of him righting its many wrongs.
Which financial brands should readers trust in the New Year? In light of the financial turmoil, scandals and excesses of the past two years, it's a challenging question and there are few contenders.
Most well known brands - such as RBS, HBOS, Lloyds TSB and Northern Rock - have lost the nation's trust. And given some executives of these organisations-continue to bleat about their mega-bonuses being taxed, consumer trust will remain in short supply for the foreseeable future.
Co-operative Bank, re-energised by its acquisition of Britannia Building Society, has a chance of winning over the hearts of more consumers with its mutual ownership and ethical stance. And Yorkshire Building Society, provided it can absorb Chelsea successfully, stands a chance of overtaking fellow Nationwide, not in size, but in terms of trust given the latter's many problems (mediocre service standards, et al).
But as everyone with an interest in financial services knows, today's crowd pleaser can easily become next year's bete noire. Financial Mail will continue to do its best steering you in the direction of security, value and quality service.
After all, that's what is wanted from financial firms. It shouldn't be too much to ask, should it?
Source
Sunday, February 28, 2010
For One Student, the Cost of College Forces a Painful Decision
Amanda Ly is an 18-year-old who graduated from high school in Alhambra, Calif., this year with dreams of leaving home and enjoying the whole college experience at the University of New Haven on the East Coast.
But in an essay on the Web site L.A. Youth, Ms. Ly described her disappointment over having to withdraw from the University of New Haven because of the cost:
The first time I visited U.N.H. was for freshman orientation, the week after high school let out in June. The school was just as it looked in the pictures. It had a mix of new and old buildings. The older buildings were brick as most of the school was, and the newer buildings were more modern. I liked the small class sizes and academic opportunities like internships and study abroad. Although I was not used to the cold, gloomy, wet weather in June, I liked the small-town atmosphere (population 124,000) and the people. I met people from all over the East Coast and made new friends. After orientation, I felt that it was the school for me. I thought, “I can make this work.”
When I came back from orientation, I started thinking about paying for college. Neither of my parents went to college and they don’t speak English so they don’t understand how things work.
During the first week of July, I went to Wells Fargo with my dad to apply for a private student loan. The loan officer asked my dad and I questions regarding my parents’ and my credit history, employment info and debts. She came back 10 minutes later and told us our request for a collegiate loan was denied because our household income was too low.
As Ms. Ly explains it, the grants and loans offered in her financial aid package only covered 70 percent of the $42,000-a-year cost of attending the university. “Each semester, I was expected to pay about $6,000,” she wrote.
She goes on to describe her efforts to find scholarships and loans and ultimately, her phone call telling the university she could not afford to attend.
After I told them of my decision, I felt sad and empty, like my life had just been paused. My college dreams were put on hold.
Now I live at home and attend East Los Angeles College. I’m tired because I work during the day and my classes are at night. After community college, I plan on transferring to Humboldt State or another four-year school to get my bachelor’s degree in psychology or administration of justice.
I’m disappointed I’m not at U.N.H. this fall. I was really looking forward to moving out and living the college life. Yet at the same time I understand that the economy makes it harder for people to get loans because banks are not willing to take risks giving them out right now.
Source
But in an essay on the Web site L.A. Youth, Ms. Ly described her disappointment over having to withdraw from the University of New Haven because of the cost:
The first time I visited U.N.H. was for freshman orientation, the week after high school let out in June. The school was just as it looked in the pictures. It had a mix of new and old buildings. The older buildings were brick as most of the school was, and the newer buildings were more modern. I liked the small class sizes and academic opportunities like internships and study abroad. Although I was not used to the cold, gloomy, wet weather in June, I liked the small-town atmosphere (population 124,000) and the people. I met people from all over the East Coast and made new friends. After orientation, I felt that it was the school for me. I thought, “I can make this work.”
When I came back from orientation, I started thinking about paying for college. Neither of my parents went to college and they don’t speak English so they don’t understand how things work.
During the first week of July, I went to Wells Fargo with my dad to apply for a private student loan. The loan officer asked my dad and I questions regarding my parents’ and my credit history, employment info and debts. She came back 10 minutes later and told us our request for a collegiate loan was denied because our household income was too low.
As Ms. Ly explains it, the grants and loans offered in her financial aid package only covered 70 percent of the $42,000-a-year cost of attending the university. “Each semester, I was expected to pay about $6,000,” she wrote.
She goes on to describe her efforts to find scholarships and loans and ultimately, her phone call telling the university she could not afford to attend.
After I told them of my decision, I felt sad and empty, like my life had just been paused. My college dreams were put on hold.
Now I live at home and attend East Los Angeles College. I’m tired because I work during the day and my classes are at night. After community college, I plan on transferring to Humboldt State or another four-year school to get my bachelor’s degree in psychology or administration of justice.
I’m disappointed I’m not at U.N.H. this fall. I was really looking forward to moving out and living the college life. Yet at the same time I understand that the economy makes it harder for people to get loans because banks are not willing to take risks giving them out right now.
Source
Monday, February 15, 2010
Explore options before defaulting on student loans
Federal student loan default rates are on the rise, but there's no need even in this weak economy for you to fall into arrears.
That's because when it comes to repaying an education loan, no one - except maybe Mom or Dad - is more lenient than Uncle Sam.
Can't find a job? Or the one you have barely pays the bills? Maybe you have decided to go back to school to wait out the recession.
Whatever...
Source
That's because when it comes to repaying an education loan, no one - except maybe Mom or Dad - is more lenient than Uncle Sam.
Can't find a job? Or the one you have barely pays the bills? Maybe you have decided to go back to school to wait out the recession.
Whatever...
Source
Thursday, January 28, 2010
Thousands still waiting for student loans
Almost three months since they began their studies, thousands of students are still waiting for loans from the Student Loans Company (SLC).
More than 100,000 students were left without cash when they began the term in September because their loans had not come through.
The delays, which began in the summer, were due to widespread processing problems.
SLC lost paperwork and failed to put students' data into its systems. Many universities have had to offer hardship funds to help the most cashstrapped students.
About 60,000 loans have yet to be paid although SLC says the majority of these are where applicants have not supplied all the relevant information.
The figures also include courses that have yet to start and students who may have been accepted for a loan but then decided not to go to university.
Becky Leeman, 18, from Norwich, contacted Financial Mail to say she still has not received her loan, even though she applied four months ago.
Despite contacting SLC regularly for updates on her application, Becky says there have been several problems, including SLC losing her birth certificate.
'Luckily my mum had a second birth certificate from the registrar so I have posted it again, by recorded delivery this time,' says Becky.
'But I have been told it will take about another 30 days to process this information. It's very frustrating.
'I've had to borrow off my mum to help towards my living costs and at this rate I still won't have the money when I start university again after Christmas.'
Becky says that Hull University, where she is studying for a degree in law, has been understanding. But her tuition fees are now three months late.
'I'm not sure how much longer the university will allow me to delay,' says Becky. 'I'm starting to get worried. The SLC doesn't seem to be able to tell me exactly when I will get
the money in my account.'
A report commissioned by the Government into the delays at SLC was published earlier this month and found 'conspicuous failures'.
The report prompted management change at the company and a review of the application process. Applications for funding for next year were postponed while the problems were rectified.
SLC says it has sorted out its processing issues and that applications for funding for 2010-11 should be smooth.
A spokeswoman says any student still waiting for their money for 2009-10 should contact SLC on 0845 300 50 90 quoting their reference number as extra information may be required to process the application.
Source
More than 100,000 students were left without cash when they began the term in September because their loans had not come through.
The delays, which began in the summer, were due to widespread processing problems.
SLC lost paperwork and failed to put students' data into its systems. Many universities have had to offer hardship funds to help the most cashstrapped students.
About 60,000 loans have yet to be paid although SLC says the majority of these are where applicants have not supplied all the relevant information.
The figures also include courses that have yet to start and students who may have been accepted for a loan but then decided not to go to university.
Becky Leeman, 18, from Norwich, contacted Financial Mail to say she still has not received her loan, even though she applied four months ago.
Despite contacting SLC regularly for updates on her application, Becky says there have been several problems, including SLC losing her birth certificate.
'Luckily my mum had a second birth certificate from the registrar so I have posted it again, by recorded delivery this time,' says Becky.
'But I have been told it will take about another 30 days to process this information. It's very frustrating.
'I've had to borrow off my mum to help towards my living costs and at this rate I still won't have the money when I start university again after Christmas.'
Becky says that Hull University, where she is studying for a degree in law, has been understanding. But her tuition fees are now three months late.
'I'm not sure how much longer the university will allow me to delay,' says Becky. 'I'm starting to get worried. The SLC doesn't seem to be able to tell me exactly when I will get
the money in my account.'
A report commissioned by the Government into the delays at SLC was published earlier this month and found 'conspicuous failures'.
The report prompted management change at the company and a review of the application process. Applications for funding for next year were postponed while the problems were rectified.
SLC says it has sorted out its processing issues and that applications for funding for 2010-11 should be smooth.
A spokeswoman says any student still waiting for their money for 2009-10 should contact SLC on 0845 300 50 90 quoting their reference number as extra information may be required to process the application.
Source
Subscribe to:
Posts (Atom)