Public Accounts Committee
Student Loan Repayments
HC 886, Forty-Fourth Report of Session 2013-14 - Report, Together with Formal Minutes, Oral and Written Evidence
- House of Commons - Committee of Public Accounts
- TSO (The Stationery Office)
The report 'Student Loan Repayments (HC886) examines the government's performance in ensuring that student loans are repayed.
There is at present around £46 billion of outstanding student loans on the Government's books, and this figure is set to rise dramatically to £200 billion by 2042 in 2013 prices. By 2042 there will be an estimated 6.5 million borrowers of student loans.
At the same time, estimates for the amount of loans that will not be repaid are also rising and the Government assumes that 35-40% of outstanding loans will never be repaid. That is some £16 billion to £18 billion on the current debt of £46 billion and £70 billion to £80 billion on the estimated value of student loans by 2042.
The Department for Business, Innovation & Skills (BIS) is not doing enough to secure value for money from its collection arrangements. BIS is unable to accurately forecast student loan repayments, and does not have a sufficient understanding of the likely future cost of non-repayment to the taxpayer.
The Student Loans Company is not doing enough to ensure that it identifies and collects all the repayments due, given the substantial size of the financial assets involved, and will need to demonstrate value for money from the proposed sale of the student loans book.
|Format||Paperback||Published||14 Feb 2014|
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