GBP11.1m Worth Of Student Loans Written Off

Fri, 06 Feb 2009

The value of unpaid student loans has risen from £6.9 million to £11.1 million over the last two years, according to figures published by the Department for Innovation, Universities and Skills.

Since the introduction of the current loans system in 1990, the total value of loans written off by the Government has increased consistently each year – a trend which higher education minister David Lammy said reflects "the increasing maturity of the student loan book".

Reasons why student loans may fail to be paid off in full include the borrower dying, reaching the pensioner age of 65, or if the borrower starts to receive disability benefit.

In response to the recent figures, the Conservatives claimed that too little effort is made by the Government in recovering debt from graduates living abroad.

David Willets, the Department’s shadow minister said: "The Government has been very blasé about recovering debts from graduates who live abroad."

"Ministers need to get their eye on the ball because fewer repayments from yesterday’s students means less money for tomorrow’s students ."
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