Sale of Student Loans Bill
12:30 pm
Bill Rammell: The default process under the income-contingent repayment system is fairly difficult to achieve because it is very clear that repayments are made through HMRC when you are in work and earning more than £15,000. In the very small number of cases where there is a default, it is the responsibility of Government and whoever owns the debt to deal with that through the Student Loans Company.
The difference is not between high risk and low risk for determining in what order the sales take place; it is about which loans have a sufficient track record of repayment. Those who have just graduated from university and started their repayments in April the following year will not have demonstrated themselves to be robust repayers. In no sense does that mean that they will not achieve that status. It simply means that it is too early in their repayment profile for them to have demonstrated it.