Section:GDN 1N PaGe:16 Edition Date:190906 Edition:01 Zone: Sent at 5/9/2019 19:34 cYanmaGentaYellowbl
- The Guardian Friday 6 September 2019
(^16) National
Richard Adams
Education editor
Martin Lewis, the consumer fi nance
expert, has accused Ucas of abusing
its position after the university admis-
sions service allowed a private debt
fi rm to market commercial loans with
high interest rates to school leavers.
A message from Ucas to students
registered with its service carried
advertising for Future Finance, a Dub-
lin-based private debt fi rm that off ers
loans of up to £40,000 to students at
UK universities, with annual interest
rates of 16% or more.
Lewis, the ex-BBC journalist who
founded the consumer advice web-
site MoneySavingExpert.com, has told
Ucas it had been “tainted” by advertis-
ing loans that were inappropriate for
most students, charging interest rates
far above government-backed loans.
“We have seen a number of concerns
smart and simple fi nance designed
around your potential, not your cur-
rent situation.”
Lewis said student loans from the
government were “an entirely diff er-
ent beast from the commercial debt
this email was fl ogging. Student loans
are income contingent – only repaid if
people earn enough after university
and repaid in proportion to that – and
the debt wipes after 30 years.”
The commercial loans being off ered
have interest rates of up to 23.7%, well
above the current maximum of 5.4%
on student loans and worse than
most high street credit cards or even
bank overdrafts, according to Lewis.
“I would kindly ask that the trustees
urgently consider permanently and
publicly blocking the inclusion of
these adverts, and any adverts from
commercial debt fi rms, in future,” he
wrote to Lamberts, who is also the
vice-chancellor of Sheffi eld University.
In response, the admissions service
said: “Ucas is an independent char-
ity. All our activities are funded by
application fees, by universities and
colleges, and through gift aid from
the profi ts of our wholly owned com-
mercial subsidiary, Ucas Media. This
helps us to keep the costs for students
applying to university as low as pos-
sible.” It said that users could opt out
of marketing emails at any time, and
that Ucas “always advises that the best
option for students is a government-
funded student loan”.
Future Finance has been contacted
for comment.
The promotion of commercial
loans by Ucas was initially criticised
on social media after the email was
sent at the end of last month. Eva
Crossan Jory , the National Union of
Students’ vice-president , said : “Our
student loan system may be broken
but encouraging students to take out
private loans, some of which they
will end up paying back double on, is
beyond disappointing.”
Ucas ‘abusing role by
pushing costly loans,
to school-leavers’
raised by shocked recipients. In allow-
ing inclusion of this advert, we believe
your charity breached an ethical line,
and failed in its duty of care to the
people it communicates with, which
includes a high proportion of school
leavers,” Lewis said in a letter to Koen
Lamberts, who chairs the service.
“Ucas has privileged, monopoly
access to this young and impression-
able audience. It is also seen as an
institutional authority and therefore
adverts contained in your email are
eff ectively being legitimised by inclu-
sion, and some may even mistake it for
a direct recommendation.”
The emails sent by Ucas said: “See
the below information from Future
Finance that we hope you fi nd of inter-
est”. Underneath, the message from
Future Finance said: “Student fi nance
not enough? Apply for extra funding
whenever you need it.”
The message told readers: “We
are backing the next generation with
‘In allowing inclusion
of this advert, we
believe your charity
breached an ethical
line and failed in
its duty of care’
Martin Lewis
Finance expert
Ucas said profi ts f rom commercial
ventures help to keep down the fees it
charges applicants and universities
PHOTOGRAPH: MATTHEW HORWOOD/GETTY
RELEASED BY "What's News" vk.com/wsnws TELEGRAM: t.me/whatsnws