Prisoners in Jail Claim Millions in Student Loans and Grants

Prisoners studying university courses are believed toLiving costs vary according to where you study and
have claimed millions of pounds in student loans andwill inevitably be higher if you live away from home
grants.and higher still if you live away from home and study in
Despite the fact that taxpayers are already paying outLondon.
to keep them in jail, inmates succeeded in claimingFinancial support is available to help with tuition fees in
more than 370,000 pounds in the past year alone.the form of no-interest government loans. Some
Officials have been trying to ascertain the scale of thestudents may also be eligible for help with
payments, made since 1998, amongst worries that theaccommodation and living costs too. Grants and loans
overall bill could reach several million pounds.are paid termly.
Universities Secretary John Denham acknowledgedMr Denham acknowledged in a Commons statement
the handouts were "unjustifiable" and stated that allthat rules enable prisoners on full-time university
prisoner grants and loans for living costs would becourses to apply for and claim student grants and
cease immediately.loans.
It is beyond belief that ministers had not noticed theseSome inmates were allowed out on day release to
payments before.further their studies, he said. Mr Denham admitted 91
The Government's prolonged ignorance was deemedprisoners had received approximately 120,000 pounds
to be "staggering" by the Taxpayers' Alliance and thein maintenance grants and 250,000 pounds in
Tories said the debacle would appall studentsmaintenance loans during 2007.
struggling to make ends meet.HM Revenue & Customs is responsible for
There are basically two types of cost that studentscollecting repayments of the student loans. (The issue
face: tuition fees and accommodation and day-to-dayand administration of the student loans continues to be
living expenses. For students who started full-timehandled by the Student Loans Company).
courses on or after September 2006, the maximumRepayments start once the student has started work
tuition fees that can be charged for 2008/2009 areand has earnings in excess of 15,000 pounds per year.
3,145 pounds. The maximum contribution cost for the(Or in the case of those who become self-employed,
same academic year for students who beganwhen profits exceed 15,000 pounds).
courses prior to September 2006 is 1,255 pounds.