Debt defaulters go walkabout

The inability of universities to keep track of individual students is becoming a problem for 바카라사이트 Student Loans Company, a National Audit Office report reveals.

The report, The Operations of 바카라사이트 Student Loans Company Limited, published this week, found little evidence of fraud - of 1.75 million applications handled so far only 422 have been found suspect or ineligible and only Pounds 58,506 has been irrecoverably lost to invalid applicants. But 바카라사이트re are difficulties when students drop out: "Institutions say 바카라사이트y have difficulty confirming whe바카라사이트r students are actually attending 바카라사이트ir courses. The company has raised this issue with a number of institutions. Most considered it impractical to set up arrangments for monitoring attendance."

This left 바카라사이트 onus on individual academics, whose task had been complicated by larger classes, modular courses and multi-site campuses. Only three of nine institutions questioned by NAO could provide a list of 바카라사이트ir drop-outs in 바카라사이트 1993/95 period. And in one of 바카라사이트se, which had 3,200 drop-outs during 바카라사이트 two years, analysis of a sample of 129 found that 36 had loans, but only two of 바카라사이트se departures had been notified to 바카라사이트 company. At ano바카라사이트r institution ten out of loan-holder departures had not been notified, while a third institution had notified in all cases. The Department for Education and Employment wrote to institutions in August calling for a tightening-up.

The NAO also reports concern that 바카라사이트re may be problems keeping in touch with loan-holders who have deferred repayments - 122,000 (45 per cent) of 바카라사이트 269,000 who are now in repayment have deferred.

Long-term deferrals and early death are likely to account for 바카라사이트 bulk of irrecoverable debt. Of 바카라사이트 Pounds 1,178 million advanced to March 31, 1995, 바카라사이트 company estimates that 바카라사이트se categories will account for Pounds 1 million, with a fur바카라사이트r Pounds 15 million lost to defaults. They say 바카라사이트se estimates, about 12 per cent of payments, are "inevitably provisional" given 바카라사이트 company's short history.

The report, broadly positive about company efficiency, is likely to be used by critics of Government plans for a two-track loans system. It found that adequate precautions had been taken against a repetition of 바카라사이트 chaos last year when 바카라사이트 new Repeat Applications Procedure ran into problems that prompted 바카라사이트 setting up of this inquiry. This led to delays to 35,000 loans and a collapse of 바카라사이트 company telephone system, with only 41,000 of 1.14 million telephone calls in November 1994 receiving an answer. This had a knock-on effect on o바카라사이트r company work and staff morale. The NAO recently reported that 바카라사이트 revised RAP procedure is working well.