Ministers 'passing buck over student loan crisis'

A new row broke out today over the crisis in the student loans system as the Government was accused of "passing the buck" to councils.

Computer problems have severely delayed processing of applications, leaving thousands of students facing a new term next month without cash.

Ministers urged local authorities to "pull out all the stops" to ensure first-years get their money - but at the same time refused to extend to new students a contingency plan that will help those already at university.

The Government says it wants to avert fraud, but today Malcolm Grimston, education chairman in Wandsworth, said: "It's a bit rich for ministers to be asking us to get them out of the mess they made."

The crisis is expected to worsen next week when thousands apply to university after A-level results. Croydon council said the Education Department had offered to pay for couriers to take paperwork to the Student Loans Company in Glasgow instead of using the new £30million computer system.