PARLIAMENTARY WRITTEN QUESTION
Overseas Students: Loans (28 April 2016)

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of (a) the outstanding student loan debt held by non-UK EU citizens, (b) the proportion of that debt that will be repaid and (c) the proportion of that debt that is outstanding.

Asked by:
Sir Bernard Jenkin (Conservative)

The Student Loans Company (SLC) administers student loans for each of the UK Government Administrations. Statistics covering English loans to EU domiciled borrowers are published annually by SLC in the Statistical First Release ‘Student Loans in England’.

http://www.slc.co.uk/official-statistics/student-loans-debt-and-repayment/england.aspx

At the end of the financial year 2014-15, the overall Higher Education English Income Contingent Repayment (ICR) loan balance outstanding was £64.7 billion. Of this, around 1.5% (£958 million) was held by EU domiciled borrowers.

Between 75% and 80% of the total value of loans from borrowers of all domiciles are expected to be repaid. An estimate for loans to EU domiciled borrowers is not available. Borrowers do not have to repay until they are earning over the relevant repayment threshold. Repayment is income contingent at 9% of any income over the repayment threshold.

SLC has arrangements in place to collect repayments from borrowers who move away from the UK; SLC establishes a 12 month repayment schedule based on the borrower’s income and provides information on the methods of repayment available.

SLC sets up fixed repayment schedules for borrowers who do not remain in contact and will place those borrowers in arrears. Further action, including legal action, can then be taken to secure recovery. European Commission regulations allow the SLC to obtain judgments in UK courts, which can be enforced by courts in other EU countries.

Answered by:
Lord Johnson of Marylebone (Conservative)
4 May 2016