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It follows reports the company needs a loan of up to £75m to keep trading in the coming months. The UK’s second largest steel firm employs 4,500 people, and about 20,000 indirectly via its supply.

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"The rule is: free money first (scholarships and grants), then earned money (work-study), then borrowed money (federal student loans)," the US Department of Education writes on its website, adding.

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