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The Student Loans Company's (SLC) headquarter office in Glasgow, United Kingdom.
In a story first reported by The Guardian, the UK-owned Student Loans Company (SLC) has suspended its Chief Executive Officer Steve Lamey, pending an investigation.
No reason has been given by the Student Loans Company on behalf of its decision, but the state-owned company did confirm the decision. Additionally, the decision to suspend Lamey was also confirmed by the UK Department of Education.
In an email, an SLC spokesman official said the following, “The suspension is a neutral act and does not imply wrongdoing. As the matters leading to the suspension are now subject to an independent investigation it would be inappropriate to comment further at this time.”
In a statement to The Guardian, the Department of Education had the following to say, “We can confirm that the Student Loans Company board in consultation with the DfE has suspended its chief executive officer. We are confident that SLC operations will not be detrimentally affected as a result of this issue.”
Lamey became the CEO of the Student Loans Company, which handles the government’s portfolio of student loans, in June 2016. He previously served as both Chief Operations Officer and Chief Executive Officer of HM Revenue & Customs’ tax credits and child benefits division.
The suspended CEO also was the director of an outsourcing corporation known as Serco, for which he handled business development for government opportunities.
The move by the SLC comes at a time when the company has received some negative coverage in the news. LendEDU has covered the issues surrounding the company extensively.
A recent report published by the Institute for Fiscal Studies showed that the average UK student will soon owe more than £50,000 in student loan debt, in large part due to a high interest of 6.1 percent. Many have called for that interest rate to be lowered, while Jeremy Corbyn, Leader of the Labour Party, has proposed cancelling all historic student loan debt completely.
Further, in June, LendEDU reported that the SLC admitted that nearly 80,000 former foreign students have left the UK without paying back a total of £1.2 billion in student loan debt.
On top of all this, the SLC released a report that showed that students who studied in Northern Ireland owe £3 billion in student loan debt. That amount marked a 10.6 percent increase from the same time last year. Collectively, students across the UK owe over £100 billion in student loans for the first time in the country’s history.
In his role at LendEDU, Mike uses data, usually from surveys and publicly-available resources, to identify emerging personal finance trends and tell unique stories. Mike’s work, featured in major outlets like The Wall Street Journal and The Washington Post, provides consumers with a personal finance measuring stick and can help them make informed finance decisions.