Undergraduates waiting to start at University are in debt management turmoil after the student loans system revealed one in ten will have to wait a month without cash.
The meltdown of the student loans process, reportedly caused by poor planning, administrative blunders and the recession, has left ten per cent of students without cash at the start of term.
This leaves thousands at the risk of developing debt problems, as they may have to fund their rent, books and other outgoings with their available credit.
For those without a credit card or overdraft facility, the risk is increased further – as they may be tempted to use expensive loan sharks or other ways to cover their costs.
Students have complained about documents going missing, and being stuck on hold for hours on telephone helplines only to be given no information when they finally get through.
Debt advice organisations have expressed concern for the 50,000 students who start without their much needed money.
Ivan Cooper, Chairman at debt management specialists Chiltern, said: “It’s always difficult for students to balance their finances, but withoutthe funding in place from the start of term, more will be at risk of developing debt problems.
“More should be done to offer students debt help, as it is often their first taste of independent life away from home, and it can be very hard for them to get out of debt with their limited finances.”