CM December 2023

The Independent Schools Council trade
body estimates that around 5.9 percent of
UK children attend private schools, and
this equates to around 620,000 children
being educated in 2,500 private schools.
On the other end of the scale, I am also
seeing more and more issues related to
chasing down university tuition debt.
And like private education, this is an area
which has its own unique challenges.
Higher education
According to Government figures, the
higher education entry rate among UK 18
year olds increased from 24.7 percent in
2006 to 30.7 percent in 2015 and peaked
at 38.2 percent in 2021. It fell back to 37.5
percent, its second highest ever level,
in 2022.
Like private education, the costs are
also going up. This September, the average
student graduating from an English
university will have £44,940 of debt. For
universities, recouping this money is
usually relatively straight-forward thanks
to the loans most students take out.
However, issues can arise either when
UK-based students have not taken out the
loans (and this can be down to a variety
of reasons from incorrect paperwork or
missed deadlines), or overseas students,
who have significantly higher fees, have
missed payments.
For universities and other FE
institutions significant challenges can
present themselves when dealing with
students – not least because the university
experience is often a young person’s first
time living independently and managing
their money. It’s really typical, in
instances where fees haven’t been paid,
to see students simply burying their head
in the sand. Students are generally not
used to having financial independence
and it can be particularly daunting when
they’re dealing with significant sums of
money.
Ultimately, similar to the solutions for
private schools, it is important universities
ensure they don’t have a one-size-fits
all approach to debt recovery, when in
reality, a bespoke approach to recovering
money must be taken, taking into account
people’s individual circumstances. This
is particularly important when you’re
dealing with young people who may be
vulnerable. As with private schools, and
indeed most forms of debt collection,
clear channels of communication are also
vital. Information must be easy to digest,
and quick solutions should be prioritised
– not least because the longer the process,
the more the costs increase.
I’ve often seen systems which mean the
credit control process takes around sixto
nine-months – which is far too long.
Considering students in particular – a
transient population who may be living
between their parent’s home, student
accommodation or could have moved
elsewhere, a lengthy process to recover
Many schools will have a number of
scholarships, grants and means-tested
bursaries on offer (it is part of their
charitable obligation) and it’s important
these are clearly signposted.
debt could mean that contact information
is quite quickly out of date. A much
swifter response is needed.
Debt recovery is a sensitive business,
no matter the sector but in education a
particularly expert, carefully-managed
and sensitive approach is needed to
ensure both parents and students are
supported through the process.
Giles Parry, is Litigation Legal Assistant
at Shakespeare Martineau.
Brave | Curious | Resilient / www.cicm.com / December 2023 / PAGE 27