HL Deb 20 January 2004 vol 657 cc906-7

3.7 p.m.

Baroness Sharp of Guildford asked Her Majesty's Government:

Whether European Union students at British universities will enjoy the same access to student loans for the payment of fees as British students.

The Parliamentary Under-Secretary of State, Department for Education and Skills (Baroness Ashton of Upholland)

My Lords, we are planning to abolish up-front payment of fees for full-time undergraduates from 2006. From that date, European Union students will have access to loans for payment of fees on the same basis as British students.

Baroness Sharp of Guildford

My Lords, I thank the Minister for her reply. Can she confirm that, at any one time, approximately 10,000 students from the European Union are resident in the UK as students and that each of them would therefore be eligible in 2006 to take up a £3,000 loan? Can she tell us how the Government propose to pursue the repayment of the loans from those students?

Baroness Ashton of Upholland

My Lords, in answer to the noble Baroness's first question, I cannot confirm that 10,000 students from the European Union are resident in the UK because, in fact, 35,000—students 35,641 to be precise—come to our universities in order to study. However, I can tell the noble Baroness that the Student Loans Company already has in place a system to collect maintenance loan debts from those who live outside the UK. It is exploring, and continues to explore, ways of building relationships with other European states, including those which may join the European Union in the future. That system will continue to operate successfully when the changeover takes place.

Baroness Gardner of Parkes

My Lords, I have had personal experience of the great difficulty involved in collecting money from someone who has returned overseas. Can the Minister tell me whether any system will be in place whereby a surety or a guarantee in this country will be required? Will the loans be covered under English law? What will be the jurisdiction and what action will the Government be able to take if the money is simply not forthcoming?

Baroness Ashton of Upholland

My Lords, there are already a number of systems available through existing international money transfer facilities offered by financial providers. International trace agencies are used by the Student Loans Company, which is used to tracing students and recovering debt. There are also issues that we can pick up through legal and commercial recovery systems, if need be. These are well established routes that have been successful.

Lord Swinfen

My Lords, will British students at European universities be able to avail themselves of these loans?

Baroness Ashton of Upholland

Indeed, my Lords. There are currently 6,290 UK undergraduates studying in the European Union.