28/11/2013

NAO Critical Of Student Loan Recovery System

The National Audit Office (NAO) has criticised the government for not doing enough to recover student loans.

According to the NAO the outstanding loan debt stands at £46 billion and is predicted to rise to £200bn over the next 30 years.

An NAO report claims that around half of all students are not expected to earn enough to repay their loans, and highlighted over £5bn owed by almost 400,000 students who whereabouts are unknown.

It is understood that the increase in tuition fees has lead to higher levels of student debt, with the spending watchdog saying that the government needs "much tighter scrutiny over levels of repayment".

"It is essential that government collects every pound it can of the debt that should be collected," the NAO said.

(MH/CD)


Related UK National News Stories
Click here for the latest headlines.

21 April 2005
Liberal Democrats to tackle student debt
The Liberal Democrats have promised to remove the fear of debt from university students by scrapping tuition and top-up fees and increase grants for poorer students. The party announced that a Liberal Democrat government would provide grants of up to £2,000 per year to poorer students.
02 November 2011
Student Loan Company Recruits 'Lab Subjects'
Students from across the country are being recruited to take part in a unique experiment, which could shape how student finance products and services are run in the future. The Student Loans Company (SLC) has launched a nationwide search for 5,000 customers to take part in its online Student Finance Lab.
27 April 2012
Government Departments Outsourcing Debt Collection
Government departments tasked debt collection agencies with recovering almost £60bn in unpaid consumer debt last year, according to figures release for the first time by the industry.
16 June 2006
Graduates loans arrears rise
The latest figures from the Student Loans Company (SLC) have revealed that many students are struggling to keep up their loan repayments. SLC reported that loan arrears were outstanding on £186m made in student loans in the year 2005 to 2006. This takes the total to almost £19bn owed on loans made to students and graduates.
06 February 2004
Government failed to monitor British Energy's problems, say NAO
The government failed to monitor troubled nuclear power station operator British Energy closely enough as financial problems within the company grew, the National Audit Office (NAO) has said.