Background
The Department for Education (DfE) oversees the student loans system and owns the student loan balance, which represents how much the government expects to recover from loans issued to students. These cover tuition fees and, in some cases, maintenance costs. The Student Loans Company (SLC) administers student loans on behalf of DfE.
In 2025-26, government issued £21.3 billion new loans, contributing to a total £294.6 billion outstanding loans at the year end, more than double that of 2019-20. DfE estimate that 55% of full-time undergraduate students starting in 2025/26 will fully repay their loan.
Scope
This report will assess how well government is managing key value for money risks across the student loans system. This includes the risks associated with DfE’s overarching stewardship and government having appropriate data and IT systems, administrative processes and controls, fraud and error processes, and good quality, timely information for decisions.
The study will not examine loans for further education, or policy decisions, such as loan repayment thresholds, interest rates or the affordability of student loans.
NAO
Director: Emma Wilson
Audit Manager: Stephanie Woodrow