STUDENTS should escape loans for the foreseeable future.

Less than a year after the States decided to introduce them from 2009, Education says they are not needed.

The issue will go to the States at the end of the month after 23 out of 47 States members signed a requete by Deputy Matt Fallaize to scrap the scheme.

In a move that will upset those who have been put off going to university by the prospect of having to repay a loan, Education, Treasury and the Policy Council agree that the financial situation was better than reported in November, so grants can continue.

All that remains to be seen is whether the requete goes through without amendment – which would mean no loans until at least 2011 – or with a council-backed proviso that the annual funding cost could not rise above £7m. at 2006 values.

If it did, loans could be back on the agenda.