Students: Loans

Treasury written question – answered on 27th March 2007.

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Photo of Alistair Carmichael Alistair Carmichael Shadow Secretary of State for Transport, Liberal Democrat Spokesperson (Transport)

To ask the Chancellor of the Exchequer pursuant to the answer of 19 March 2007 to question 127940, what estimate he has made of the percentage of student loan repayments made to HM Revenue and Customs in financial years (a) 2005-06 and (b) 2003-04 that have not yet been passed on to the Student Loan Company; what estimate he has made of the total value of these payments; and how many people made student loan repayments during 2003-04.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

For the financial year 2005-06 HM Revenue and Customs will only know the total number of borrowers who have had repayments deducted by their employer when they have finished processing all the employers' annual returns for that year.

However, at the current date, the best estimate is that information on 83 per cent. of all student loan repayments has already been passed on to the Student Loans Company.

For the financial year 2003-04 HMRC has passed information on student loan repayments for 277,499 borrowers to the Student Loans Company. HMRC is in the process of resolving queries that have delayed 21 cases (0.008 per cent.) being passed to the SLC.

With regards to the total value of these payments, no student loan amounts are passed to the SLC at any stage. All student loan amounts recovered by HMRC are passed to the Department for Education and Skills on a quarterly basis for investment in education. It is only the information about borrower repayments that is included in the employer's annual return that is passed to the SLC once that information becomes available after the end of the financial year. Published 2003-04 and 2004-05 student loans cash receipts figures are available in the 2005 and 2006 HM Revenue and Customs annual report which can be accessed at:

http://www.hmrc.gov.uk/about/reports.htm

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