Students: Bankruptcy

To ask the Secretary of State for Innovation, Universities and Skills how many undergraduate students resident in (a) Suffolk, (b) the East of England and (c) England declared themselves bankrupt in each year since 1997. (187615)

Provisions were included in the Higher Education Act 2004 to prevent student loans being written off on bankruptcy (mortgage-style 1oans from July 2004 and Income-contingent loans from September 2004). Currently student loans are not exempt from individual voluntary arrangements (IVAs).

The increase in student loan borrowers with bankruptcies and IVAs should be seen in the context of the increases among the general population. Figures from the Insolvency Service show that between 2002 and 2006 the number of individual bankruptcies in England and Wales more than doubled; the number of IVAs increased seven-fold.

Up to 2004 only combined figures for bankruptcies and IVAs are available from SLC data. After the change in legislation SLC ceased to record bankruptcies, as student loans are excluded from bankruptcy debts and are not written off on discharge from bankruptcy. Figures from 2005 show IVAs only.

Available data are shown in the tables.

*Students with publicly-owned student loans who notified the Student Loans Company (SLC) of their bankruptcy or individual voluntary arrangement (IVA) while studying*¹*. Students domiciled in Suffolk, East of England Government Office Region and England. Calendar years of bankruptcy or IVA 1997 to 2004*
	Suffolk²	East of England²	England³
1997	⁴—	⁴—	10
1998	⁴—	⁴—	10
1999	⁴—	⁴—	20
2000	⁴—	⁴—	20
2001	⁴—	⁴—	10
2002	⁴—	⁴—	10
2003	⁴—	10	50
2004	⁴—	10	110
¹ Figures are rounded to the nearest 10 borrowers. Students on postgraduate initial teacher training courses can be eligible for loans, and therefore figures may include some who took out loans for postgraduate study. ² Income-contingent loans only. Information on mortgage-style loan borrowers who are bankrupt or have IVAs is not available by local authority or Government Office Region. ³ Mortgage-style and income-contingent loans. ⁴ Nil or less than five. Source: Student Loans Company

*Students with publicly-owned student loans who took individual voluntary arrangements (IVA) while studying*^1.Students domiciled in Suffolk, East of England Government Office Region and England. Calendar years of IVA 2005 to 2006
	Suffolk²	East of England²	England³
2005	⁴—	⁴—	30
2006	⁴—	⁴—	20
1 Figures are rounded to the nearest 10 borrowers. Students on postgraduate initial teacher training courses can be eligible for loans, and therefore figures may include some who took out loans for postgraduate study. 2 Income-contingent loans only. Information on mortgage-style loan borrowers who are bankrupt or have IVAs is not available by local authority or Government Office Region. 3 Mortgage-style and income-contingent loans. 4 Nil or less than five. Source: Student Loans Company.

Volume 472: debated on Friday 7 March 2008