Thousands Affected by Student Loans Company System Error, Impacting 4,000 Loans

A systemic error at the Student Loans Company (SLC) has affected approximately 4,000 students who took out Advanced Learner Loans (ALL), preventing their loans from being written off after completing their higher education courses. The issue was highlighted by the Parliamentary and Health Service Ombudsman (PHSO), which found that many students, including Jennie Bradbury from Stoke-on-Trent, faced significant delays in loan cancellation. Bradbury's loan, taken out in 2013 for a diploma, was supposed to be canceled in 2019 but remained unpaid until September 2023, despite multiple inquiries. The Ombudsman criticized the SLC for its handling of the cases and has recommended improvements to their processes, as well as compensation for affected borrowers. Following the investigation, the SLC has committed to writing off the outstanding loans and addressing the systemic issues. The case underscores the urgent need for better management of student loan processes in the UK.