The Student Loans Company (SLC) has paid out nearly £2m in bonuses to staff despite leaving more than 100,000 students waiting weeks to receive their loans this autumn, the Liberal Democrats have revealed.

The figures, received following a Freedom of Information request, show that £1,893,000 was paid in bonuses between 2007 and 2009.

Stephen Williams, Liberal Democrat spokesman for universities, said: “It is absolutely outrageous that the Student Loans Company, which has acted so incompetently this year, has been paying out these massive bonuses.

“While students have been left struggling to make ends meet, the company’s top executives have been enjoying five figure bonuses.

“Some of these pay-outs are more than many people earn in a year. Rewarding failure in this way is totally unacceptable.”

This year was the first time freshers applied directly to the SLC for grants and loans, but disappointment was rife, as the agency struggled to cope with the demand.

Ministers ordered an inquiry after almost 150,000 students who had applications approved, were left without funding at the start of the new academic term.