House of Commons - Committee of Public Accounts: Student Loan Repayments - HC 886

Download or read book House of Commons - Committee of Public Accounts: Student Loan Repayments - HC 886 written by Great Britain: Parliament: House of Commons: Committee of Public Accounts and published by The Stationery Office. This book was released on 2014-02-14 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is at present around £46 billion of outstanding student loans on the Government's books, and this figure is set to rise dramatically to £200 billion by 2042 (in 2013 prices). By 2042 there will be an estimated 6.5 million borrowers of student loans. At the same time estimates for the amount of loans that will not be repaid are also rising and the Government assumes that 35-40% of outstanding loans will never be repaid. That is some £16 billion to £18 billion on the current debt of £46 billion and £70 billion to £80 billion on the estimated value of student loans by 2042. The Department for Business, Innovation & Skills (the Department) is not doing enough to secure value for money from its collection arrangements. The Department is unable to accurately forecast student loan repayments, and does not have a sufficient understanding of the likely future cost of non-repayment to the taxpayer. The Student Loans Company is not doing enough to ensure that it identifies and collects all the repayments due, given the substantial size of the financial assets involved, and will need to demonstrate value for money from the proposed sale of the student loans book.