§ Mr. DhandaTo ask the Secretary of State for Education and Skills what action he is taking to support undergraduate students who incur greater debts than other students as a result of their courses being longer than three years. [137099]
§ Alan JohnsonThe Government provide support to meet the essential living costs of students. If courses take four or five years, student loans are available on the same favourable income contingent repayment terms as for the first three years. Graduates only repay their loans when they can afford to do so.
§ Mr. Damian GreenTo ask the Secretary of State for Education and Skills what percentage of student loans have been defaulted in each of the last five years. [137168]
§ Alan JohnsonThe table shows borrowers with loan accounts in arrears as a percentage of all borrowers with mortgage style loans in repayment status at the end of financial years 1999–2000 to 2001–02. Data for earlier years are not available.
Financial year In arrears (percentage) 1999–2000 10 2000–01 10 2001–02 9 Notes
1. The table is based on a snapshot of data at 31 March of each financial year. Accounts may move in or out of arrears status during the year, and may leave repayment status during the year, such as when the loan is paid in full.
2. The table covers borrowers with mortgage style loans only; income contingent loans have been excluded. Includes both publicly and privately owned debt.
3. Excludes borrowers in deferment with arrears.
Source
Student Loans Company
From September 1998, most new entrants to higher education have income contingent loans. Apart from a few exceptions, repayments are collected through the tax system, mostly by employers through PAYE, and therefore the concept of default does not apply.