A review of student support by the Department of Education and Employment has rejected recommendations from the Dearing Committee to set up a single student support agency.
The present system will remain, in which local education authorities assess student applications for funding before forwarding them to the Student Loans Company for payment.
The decision was welcomed by the Local Government Association. Its education chair, Graham Lane, said: "Students and parents will benefit from using a local service rather than a remote system that doesn't understand local circumstances."
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