Mike Hancock News
MP demands action after University forced to give 150,000 pounds bail-out to Portsmouth students
Mike Hancock, MP (Lib Dem - Portsmouth South) is demanding that the Government and Student Finance England take urgent action after it was revealed that Portsmouth University had had to hand out £150,000 in grants and loans to students facing hardship - an increase of a third on last year. In 81 cases, students have not yet received any funds from Student Finance England (SFE).
Mike has written to the Universities and Business minister, Lord Mandelson, and the Chief Executive of Student Finance England demanding that they act to sort out the mess. Mike Hancock said: "The start of university is difficult enough without these problems. Students have many things that they have to buy at the beginning of the year such as textbooks, course equipment and rent deposits as well as getting on top of their new courses. But to be without money and having to continually chase up Student Finance England makes starting university even more difficult. It is simply not good enough!"
This news comes just days after the Conservatives suggested that local students could face tuition fees of over £7,000 if they take power at the next general election. That will see tuition fees for undergraduates more than double. Lord Mandelson has also suggested that tuition fees should rise. Currently there is a cap of £3,300 in England and Wales. Tuition fees were abolished in Scotland due to the former Liberal Democrat/Labour administration there.
The National Union of Students estimate that the average cost of attending university is £42,000 and on average, a student will be £20,000 in debt at the end of a three-year course.
Mike Hancock, MP (Lib Dem - Portsmouth South) said: "Student debt is spiralling out of control. This year's farce with the Student Loans system has just further illustrated the need to return to a system of free education based upon a fairer system of taxation. Now is the time to end this student debt fiasco and abolish tuition fees, but unfortunately Conservative and Labour politicians seem determined to condemn our young people to even bigger mountains of debt."
Notes: The National Union of Students estimates that the average cost of attending university now stands at more than £42,000. The average graduate will have accrued nearly £20,000 of debt by the end of a three-year course.
2) For more details on the Conservatives' university policy see Daily Express, 15 October: "Student debt to soar as tuition fees could rise to £7,000 a year" http://www.express.co.uk/posts/view/134074/Student-debt-to-soar-. Suggestions from Lord Mandelson that tuition fees will rise at http://www.telegraph.co.uk/education/6388818/Lord-Mandelson-hints-at-university-fee-rise.html
3) Figures obtained from Portsmouth University as follows: "Compared to last year, there has been a 33% increase in students requiring financial support and a 63% increase in the funds dispersed. In the first three weeks we have made 81 emergency loans totalling £19,773.06 (all students who have not received any funding from SFE) and 231 hardship grants totalling £131,504.26 (a mixture of no support, partial support and in some cases full support from SFE)) = 312 totalling £151,277.32. "
Mike's letters are below:
Lord Mandelson
Secretary of State for Business, Innovation and Skills
Department for Business, Innovation and Skills
1, Victoria Street
LONDON
SW1H 0ET
OUR REF: MA
26 October 2009
Dear Secretary of State
I am writing to you because of the problems with Student Finance England and students not receiving their student loan and for those that qualify their maintenance grant. I understand that the problems are of such a high degree that Portsmouth University have had an increase of a third in students requiring financial support and up to a few days ago, they had have to make 81 emergency loans to students who had not received any funding from Student Finance England.
You will be aware that starting university is a demanding time. And there many financial demands that students have at the beginning of term such as rent deposits, textbooks and equipment. I hope therefore that you will look into this and ensure that any outstanding claims are processed as quickly as possible. I hope also that you will ask for a report from Student Finance England as to what went wrong this year and make that available to MPs and ensure that lessons are learned for next year.
I look forward to receiving your reply.
Best wishes
Yours sincerely
MIKE HANCOCK CBE MP
---
Mr Ralph Seymour-Jackson
Chief Executive
Student Finance England
PO Box 210
Darlington
DL1 9HJ
OUR REF: MA
26 October 2009
Dear Chief Executive
I am writing to you because of the problems with Student Finance England and students not receiving their student loan and for those that qualify their maintenance grant. I understand that the problems are of such a high degree that Portsmouth University have had an increase of a third in students requiring financial support and up to a few days ago, they had have to make 81 emergency loans to students who had not received any funding from Student Finance England.
You will be aware that starting university is a demanding time. And there many financial demands that students have at the beginning of term such as rent deposits, textbooks and equipment. I hope therefore that you will look into this and ensure that any outstanding claims are processed as quickly as possible. I also hope that you will prepare a report on the problems that there have been this year and make that available to the Department for Business, Innovation and Skills and also to MPs and make sure that lessons are learnt to ensure that things go better in the future.
I look forward to receiving your reply.
Best wishes
Yours sincerely
MIKE HANCOCK CBE MP
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