§ Chris GraylingTo ask the Secretary of State for Education and Skills what proportion of recipients of student loans are in arrears with their repayments. [23496]
§ Margaret HodgeThe only borrowers who were in arrears at the end of 2000–01 were those who had taken out mortgage-style loans which were in place before the introduction of income contingent loans in 1998. At the end of financial year 2000–01 some 13 per cent. of borrowers with student loan accounts in repayment status were in arrears with their repayments. Repayment from borrowers with income contingent loans are collected through the tax system. As these repayments are mostly collected by employers who are legally obliged so to do, the borrower cannot go into arrears.