SNP TURN DAMAGING TIDE OF STUDENT DEBT.
STUDENT BANKRUPTCIES FALL FOR FIRST TIME IN 10 YEARS.
Figures released today show an 11% fall in student or graduate bankruptcies in 2007/08 under the SNP – reversing a 380% increase witnessed under Labour and the Lib Dems from 1999.
One of the first actions of the SNP in Government was to abolish the £2300 backdoor graduate tuition fee charged by Labour and the Lib Dems.
SNP MSP and Education Committee member Aileen Campbell said;
“This is welcome news and shows that by working together with universities and students we can turn the tide on student bankruptcies under Labour and the Lib Dems, and ensure graduates have a strong start to their careers in a difficult financial climate.
“Under the SNP, bankruptcies amongst students and graduates have fallen by 11%. Under Labour and the Lib Dems, the number of bankruptcies increased by 380%.
“The SNP Government’s early action to scrap Labour’s graduate endowment and improve support for students is bringing real results not only cutting bankruptcies but cutting student debt for the first time since loans were introduced.
“Alongside scrapping the graduate endowment for 50,000 graduates and students the SNP has put an additional £84 million into student support with £38m in grants to up to 20,000 part-time students, £16 million going to meet student hardship – an increase of 14% - and £30m set aside to improve student funding with students, universities and others having a say over how that funding is allocated.
“As students and graduates face the tough challenges ahead we are working together to ensure Scotland’s students are better supported now than at any point under devolution and to bring debt levels down. With the consultation on how to allocate £30 million of student support just closing the SNP is committed to improving the welfare of all Scotland’s students across the board.
“The SNP’s decision to return free education to Scotland and to scrap the charges levied by Labour and the Lib Dems has put all Scotland’s students in a better position to start their careers with strong foundations based on their ability not their wealth.”
More related information;
1. Written answer (below) from Fiona Hyslop shows that student/ graduate bankruptcies have fallen from 360 in 2006/07 to 320 in 2007/08 – a fall of 11%.
2. In 1998 only 75 graduates or students went bankrupt
3. The SNP scrapped the graduate endowment in February 2008 for all students graduating from 2007 onwards.
4. Student debt on graduation fell from £11416 in 2006 under Labour to £10947 in 2007 under the SNP.
5. Average student loan debt in Scotland is £5,354 compared to £9,580 in England
S3W-23229 - Murdo Fraser (Mid Scotland and Fife) (Con) (Date Lodged Friday, April 24, 2009): To ask the Scottish Executive how many higher education students have been declared bankrupt or have petitioned for bankruptcy in each of the last 10 years.
Answered by Fiona Hyslop (Monday, May 11, 2009): The following tables shows Scottish domiciled Student Loans Company (SLC) borrowers who have declared sequestration (been declared bankrupt) in each financial year from 1998-99 to 2007-08. This table includes both those who are currently undertaking higher education courses and those who have finished their studies.
Financial Year in which Borrowers Entered Sequestration Number of SLC Borrowers Entering Sequestration
1998-99 75
1999-2000 110
2000-01 110
2001-02 135
2002-03 150
2003-04 205
2004-05 230
2005-06 320
2006-07 360
2007-08 320
Total 2,020
Source: SLC.
Notes:
1. Student numbers have been rounded up or down to the nearest five.
2. The figure are for Scottish domiciled borrowers only.
3. The SLC does not hold details of those borrowers who are petitioning for sequestration.
4. The figures include all those who have a loan product from the SLC or who have ever had one and have declared sequestration where the SLC has been notified of the sequestration.
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