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Student Finance

Volume 448: debated on Wednesday 5 July 2006

To ask the Secretary of State for Education and Skills how many individual student loan accounts were passed to debt collection agencies from the Student Loans Company in each financial year from 1997-98 to 2005-06; and if he will make a statement. (75320)

The table shows the number of pre-1998 mortgage-style student loan accounts with debt collection agencies, as at 31 March of each year. Data for 1997/08 are not available.

Referrals with debt collection agents at 31 March—England and Wales

Number

1999

13,586

2000

17,423

2001

19,244

2002

13,005

2003

11,100

2004

15,955

2005

27,504

2006

21,758

On average, referrals to debt collection agents represent 1.8 per cent. of the total number of borrowers. These data should not be equated with the number of loan accounts in arrears; cases may be referred more than once in a year and debt collection agents are asked to locate borrowers as well as to collect loans.

There was a particular drive in 2004/05 to tackle longstanding cases via external collection agents but the volume of referrals to collection agents, and the numbers of accounts in arrears are now decreasing.

There have been no referrals to collection agents of cases under the post 1998 income contingent loan scheme.