The number of borrowers in arrears with their student loan repayments at the end of each of the last five financial years is shown in the table. These borrowers represented some 7 per cent. of the total number of borrowers at April 2006.
The figures relate mainly to ‘mortgage style’ student loans which are no longer offered to new students. Since 1998, the Government have provided loans on an income contingent basis with repayments made through the tax system, so the issue of repayment arrears and default does not normally arise.
Number of UK student loan borrowers in arrears1 Thousand At the end of financial year: 2001-02 2002-03 2003-04 2004-05 2005-06 (provisional) Deferring with arrears2 29 27 22 15 12 In arrears owing less than two months repayments3 29 39 51 58 64 In arrears owing two months repayments or more 80 72 62 59 48 1 All figures apply to publicly-owned student loans, and exclude those sold to the private sector. Being in arrears does not necessarily mean that the borrower is not currently repaying at some level. 2 These borrowers are currently deferring repayments as their income is below the repayment threshold, but have some arrears from period when payments were due accounts. 3 This includes borrowers awaiting approval to defer their repayments, with no repayment schedule in place or owing small amounts. Source: Student Loans Company
The Student Loans Company does not write off any amounts and continues to seek repayments of any arrears incurred.