Parliamentary Search

Written question asked by Anne Main (Conservative) on Tuesday, 14 March 2017, in the House of Commons. It was due for an answer on Thursday, 16 March 2017. It was answered by Lord Johnson of Marylebone (Conservative) on Tuesday, 21 March 2017 on behalf of the Department for Education.

Overseas Students: Loans

Question

To ask the Secretary of State for Education, pursuant to the Answer of 8 March 2017 to Question 65926, on overseas students: loans, if she will take steps to reduce the number of borrowers who have not repaid their loans.

Answer

The Department is taking action to reduce the number of borrowers due to repay who are not repaying their loans.

If borrowers based overseas fail to remain in contact with the SLC, the SLC will set up a fixed repayment schedule and will place those borrowers in arrears. Borrowers with post-2012 loans who have not remained in contact with the SLC are charged the maximum interest rate of RPI+3% until they get back in touch. Further action, including legal action, can then be taken to secure recovery. The SLC established a dedicated Repayments Evasion Unit in 2016 to detect borrowers overseas who fail to comply with their statutory obligations to repay their loans.

The Department published a Joint Repayment Strategy in February 2016, which sets out how action will be taken to trace borrowers and act to recover loans where avoidance or evasion is identified. This publication can be found at https://www.gov.uk/government/publications/student-loan-repayment-strategy.

Secondary information

Type
Written question
Reference
67717
Session
2016-17
Related items
Overseas Students: Loans
Wednesday, 8 March 2017
Written questions
House of Commons
Subjects
Debts Loans Overseas students
Link
View this Written question on www.parliament.uk