EC Regulation 44/2001 enables the Student Loans Company (SLC) to obtain judgments in UK courts, which can be enforced by courts in other EU countries. EC Regulation 44/2001 is not required where court action is raised in the country of domicile.
In early 2009, the SLC contacted 54 EU borrowers in order to start the legal process. Experience suggests that the majority of cases are resolved satisfactorily when the SLC advise borrowers that legal action will be taken, and where appropriate student debt has been recovered before court action has been raised. However, there remain a small number of cases which may be subject to court action under Regulation EU 44/2001 where action is ongoing. Student loan debt has so far been recovered from two students where court action was raised in their country of domicile, where the relevant local law is applicable.
Effective collection across the EU is underpinned by EC Regulation 44/2001 which allows the Student Loans Company (SLC) to obtain judgments in UK courts, which can be enforced by courts in other EU countries. SLC will use this whenever necessary.
The current estimated cash provision for fee loans and maintenance loans given to students domiciled in England is £5.2 billion in 2009-10 and £5.7 billion in 2010-11.
It is not possible to provide a breakdown of the figures as fee loans and maintenance loans are a combined budget.