STUDENTS in dire financial straits have been urged to shun loan sharks and turn instead to their own university for help.

Economist professor David Green, vice-chancellor of the University of Worcester, has called for a national campaign to encourage students facing severe cash crisis to contact their university finance office immediately for advice and financial support.

His call follows a BBC investigation that has found some students have fallen prey to text advertising from loan sharks offering “easy money” with sky high interest rates. The problem has been exacerbated by severe hold-ups in the processing of student loans that has left thousands of students with no funds to cover their living and study costs.

The University of Worcester has already lent £20,000 this term to students in need of assistance.

Prof Green said: “With so many students facing genuine hardship there needs to be a national campaign to encourage them to turn to their university for help rather than loan sharks offering money with high interest rates.

“Every university in the country has staff that are there to provide advice and support to students in real difficulty.”

The University of Worcester has e-mailed every one of its students urging them to contact the university if they need assistance.

Roger Prout, head of student services, said: “We have been very proactive in encouraging students to come to us first. Our staff are able to offer very good advice and there may be the chance to offer a short term loan.

“Unfortunately a number of money lenders, some of whom are unlicensed “loan sharks”, have been taking advantage of the delays that some students have experienced with their student finance and have been targeting young people, often through social networking sites. They charge very high rates of interest and should be avoided at all costs.”

Michael Collins, Worcester Students’ Union’s vice president education and welfare, said: “While the situation with Student Finance England is totally unacceptable in terms of leaving hundreds of students without their loans, students must not, under any circumstances, be allowed to be exploited by companies offering high interest loans and quick fixes.”