There is at present around Ap46 billion of outstanding student loans on the Government's books, and this figure is set to rise dramatically to Ap200 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 Ap16 billion to Ap18 billion on the current debt of Ap46 billion and Ap70 billion to Ap80 billion on the estimated value of student loans by 2042. The Department for Business, Innovation a Skills (the Department) is not doing enough to secure value for money from its collection arrangements. The Department 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.We only make Ap78, 000 a year out of 0845 numbers. Q192 Mr Bacon: You ... We will be in discussion with our sponsor Departmenta Q194 Chair: How much does it cost? Mick Laverty: Ap900, 000 is our estimate of changing to the 03 number.
|Title||:||House of Commons - Committee of Public Accounts: Student Loan Repayments - HC 886|
|Author||:||Great Britain: Parliament: House of Commons: Committee of Public Accounts|
|Publisher||:||The Stationery Office - 2014-02-14|