Just over a quarter of applications for FE loans had not been successfully processed by the end of October, new figures have revealed.
The Department for Business, Innovation and Skills (BIS) confirmed 52,468 applications had been lodged, seven months after 24+ advanced learning loans were first introduced.
But most recent figures show 13,425 applications were not ready for payment, which works out at 26 per cent.
A further 1,212 applications had been processed, but deemed “ineligible” by the Student Loans Company (SLC).
The Association of Colleges (AoC) confirmed it had raised concern with the SLC that the application system was not working as efficiently for FE learner as for higher education students.
Julian Gravatt (pictured), AoC assistant chief executive, said: “The SLC’s processes are fast for those who supply all the information at the right time, but slower for those who have a missing piece of information.
“This works well for full-time higher education students who apply months in advance, but is more problematic for walk-in enrolments at colleges.
“The priority for colleges at the moment is to ensure that loan applications continue to be converted into loan confirmations.
“There are some areas of the system which need improvement which AoC has taken up with the SLC.”
An SLC spokesperson confirmed the company was prepared to review how it processes FE loans.
He said: “We continue to review and develop the guidance we offer about information needed when applying for a loan, as we seek to continuously improve the service available to all applicants.”
The figures showed a continuing trend of low take-up for apprenticeship loans, as just 404 applications had been lodged.
Apprentices did not have to pay anything towards their training costs before the system was introduced in April for courses starting from August.
Sector leaders expressed concern that fear of paying off loans, that could run to several thousand pounds, was putting young people off apprenticeships.
Stewart Segal, chief executive for the Association of Employment and Learning Providers, and David Hughes, chief executive of the National Institute of Adult Continuing Education, claimed the system was failing and called on the government to take “radical action”.
The take-up is well below government forecasts of 25,000 applications for apprenticeship loans this academic year (by July 31, 2014).
A BIS spokesperson conceded there was an issue with apprentice loans.
He said: “The introduction of loans to FE has been very successful. However, application numbers indicate that employers and learners are not engaging with loans in apprenticeships.
“We are keeping a close watch on the data and the implications for the apprenticeship programme.”
We’ve got learners who applied months ago and have sent the correct paperwork numerous times and they’re *still* not moving through the system. I agree with Julian, the system works incredibly well if you’ve got a valid UK passport and NI number (I’ve seen people go from “applied” to “approved” in three days), but for those outside of that group (including, for example, UK learners who’ve got married but not changed their passport, as well as learners from overseas) we’re having quite drawn out sagas.
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The thing is, as well as affecting our cashflow, it’s affecting the learners’ ability to concentrate on their course with the threat that they might somehow been deemed ineligible and suddenly have to find £3k to cover their course fees…
Having seen the inefficiency of the HE system is anyone really surprised?
The system requires people without a passport to get a countersignature confirming their identity from someone who knows them who holds a passport. When one of our learners asked a teacher at her children’s school to do this the person wouldn’t do this because it was for a loan and felt this was akin to providing financial advice.
There is very little awareness in the public about these loans for people over 24. The scheme was launched with all the responsibility to publicize placed on the shoulders of training providers and colleges with very slim budgets. It’s hardly surprising that members of the public are suspicious. Meanwhile, another person seeking to improve their lot slips away…
There seems to be a particular problem with Access to HE loan applications where the running total of applications actually fell between September and October.