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Students wrongly informed over loans

Tuesday, June 10, 2008

MINISTERS yesterday admitted students were wrongly told that they could take out a loan to cover the cost of the £2,229 "graduate endowment" charge.
The rules do not cover this and regulations are to be rushed through the Scottish Parliament on Friday to rectify the situation, said Fiona Hyslop, the education secretary.

She blamed the previous Scottish Executive for the "legal anomaly" and announced that none of the affected group of nearly 2,500 postgraduate students would have to pay up until they complete their studies.

Labour welcomed what it described as a U-turn.

The problem stems from the Scottish Government's decision to scrap the "graduate endowment" – the sum payable by students after they graduate to help the less well-off – from April last year.

This left a group of 2,457 students who had graduated from 2005 onwards but who had remained in higher education as postgraduate students.

They were asked in March to pay the endowment, either by cash or by taking out a student loan. However, Ms Hyslop said: "A previous agreement for payment by this group of students of the fee by loan is not supported by the regulations."

Source

http://news.scotsman.com

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