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The Student Loans Company Suspend Their Chief Executive

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

The chief executive of the Student Loans Company has been suspended pending an investigation.

The company, which administers the government's portfolio of tuition fees and maintenance loans, informed its staff earlier this week that Steve Lamey and another senior official have been ordered to take gardening leave.

The SLC said: "On 11 July 2017, the Student Loans Company, in consultation with the Department for Education, took the decision to suspend the chief executive pending an investigation into concerns which have been raised.

"The suspension is a neutral act and does not imply wrongdoing. As the matters leading to suspension are now subject to an independent investigation, it would be inappropriate to comment further at this time."

The department for education have also confirmed the suspension, however they suggested the SLC's operations will not be detrimentally affected as a result.

Reports suggest the other member of staff forced to take gardening leave is the SLC's finance director, although the company has declined to confirm whether this is the case.

The news comes at a bad time for the government, with student debt levels becoming a political battleground between parties.

A recent report by the Institute for Fiscal Studies found that graduates from poorer background where racking up the largest debt, reaching an average of £57,000 by the time they left university.