Written question asked by Lord Maude of Horsham (Conservative) on Monday, 3 November 2008, in the House of Commons. It was due for an answer on Wednesday, 5 November 2008. It was answered by David Lammy (Labour) on Monday, 10 November 2008 on behalf of the Department for Innovation, Universities and Skills.

Departmental Databases

Question: To ask the Secretary of State for Innovation, Universities and Skills pursuant to the answer to the hon. Member for Rochford and Southend East of 7 October 2008, Official Report, column 549W, on departmental databases, how the Student Loans Company responds in cases where the MOSAIC data predicts a decreased likelihood of repaying the student loan.

Answer: The Student Loans Company (SLC) uses a composite modelling tool which includes access to one element of MOSAIC data only.The tool helps the SLC to predict the likelihood that borrowers who are not currently making repayments would be in a position to do so. It cannot provide any firm assessment of borrowers' ability to repay but it does provide SLC's loan administrators with indicative background when approaching borrowers. Once borrowers' actual positions are established—on a one-to-one confidential basis—action is agreed accordingly, e.g. to re-establish scheduled instalment repayment amounts, to negotiate lower repayment amounts or, for those earning under the repayment threshold, to facilitate deferment of repayments.This applies only to mortgage-style student loans, which were offered to students who started their higher education course before 1998. Since that date, this type of loan has been replaced by income contingent loans which are collected through the UK tax system by HM Revenue and Customs.

Secondary information

Type: Written question
Reference: 482 c852W; 233394
Session: 2007-08
Related items: Departmental Databases
Tuesday, 7 October 2008
Written questions
House of Commons
Subjects: Databases Student Loans Company
Link: View this Written question on www.publications.parliament.uk