Liam Byrne – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Liam Byrne on 2014-04-07.

To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the proportion of student loans issued under the (a) pre-2012 and (b) new funding system that will be fully written off.

Mr David Willetts

Our model is designed to estimate aggregate repayments across the full range of borrowers. It does not estimate outcomes at the individual level, such as the probability of an individual’s loan balance being fully written off.

However, Student Loans Company data for early pre-2012 cohorts show that that around 10% of the cohorts up to 2005 have made no repayments since taking out their loans.