Reding probes UK student loans

Date: 19/09/02

By Peter Chapman

EDUCATION Commissioner Viviane Reding has said she is probing the UK system for granting low-interest loans for university studies as it may breach EU rules guaranteeing free movement of workers.

The move follows claims from MEPs that the student loans system may discriminate against would-be students from other member states wishing to live and learn in the UK.

The UK system insists that only students with 'settled status' can benefit from loans that are the main source of funding for university students in the country.

This is defined in UK law as someone who has settled there and has no legal restriction on the amount of time they can stay.

Reding said she would check this regime to make sure it meets the terms of the EU Treaty, a 1968 regulation on free movement for workers and a 1993 directive ensuring students' rights of residence in other member states.

If the Commission suspects the rules have been breached, the UK would be told to change them or risk European Court of Justice action.

Education Commissioner Viviane Reding has said she is probing the UK system for granting low-interest loans for university studies as it may breach EU rules guaranteeing free movement of workers.