§ Mr. EdwardsTo ask the Secretary of State for Education and Skills how many individuals are repaying student loans through the Student Loans Company. [19812]
§ Margaret HodgeAt the end of the 2000–01 financial year, there were 1,170,000 borrowers repaying loans of which 652,000 had accounts retained in the ownership of the Government and repayable to the Student Loans Company (SLC). The remaining borrowers had accounts which were sold to the two private sector owners, but where the administration remains with the SLC. The number of borrowers with accounts classified as being in repayment status includes some 543,000 borrowers whose repayments were deferred because their income level was below the repayment threshold.
The accounts in the retained portfolio include mortgage style loans where repayments are made directly to the SLC, and income contingent loans where accounts are administered by the SLC but repayments, for those within the UK taxation system, are collected by Inland Revenue and refunded to the Department. Repayments from borrowers outside the taxation system, and from those with small loans, are made to the Company.