HC Deb 20 October 1992 vol 212 cc304-6
4. Mr. Battle:

To ask the Secretary of State for Education how many students applied for student loans during the last academic year.

15. Mr. Ian Bruce

To ask the Secretary of State for Education how many students applied for student loans in the academic year 1991–92; and what was the figure for the previous year.

Mr. Forman

About 264,000 students applied for a loan in 1991–92. That compares with some 192,000 students in the previous academic year.

Mr. Battle

Is the Minister aware that, even before the term begins, students in Leeds are forced to pay half their maximum loans—about £400—on securing their accommodation? How on earth does he expect students to avoid being in debt to the tune of about £2,000 before their courses end? It is all very well for him to say that they will have jobs and therefore will be able to pay that money off, but why will the Government not bring forward proposals so that students are not saddled with crippling debt?

Mr. Forman

Perhaps the hon. Gentleman has not discovered as a result of his investigation of the issues that regional variations in housing costs are among the factors taken into account when access funds are used. The hon. Gentleman was talking about hardship cases—a familiar cry from Labour Members. The vast majority of students are not in hardship, there is no evidence of such hardship, and my evidence for saying that is that the take-up rate of student loans in the last full academic year—the loans are available to all students who want them—was about only 37 per cent.

Mr. Ian Bruce

Does the Minister recall that, when we debated the Bill applying to student loans, we were told that there would be a big reduction in the numbers taking degrees? What has been the reduction?

Mr. Forman

There has been absolutely no reduction in the number of people taking degrees. Indeed, the number of degrees taken has gone up consistently under Conservative rule and the quality of those degrees has been maintained. I am grateful to my hon. Friend for raising that point.

Mr. Rooker

Although we welcome the recently announced Government survey of student incomes, we argue that such a survey is not strictly necessary. The Minister claims that there is no hardship among students. I urge him to check at random among all the higher educational institutes throughout the country to see the true situation. Will he take it from me that at the University of Newcastle-upon-Tyne, 72 per cent. of students eligible for the full grant are on an overdraft, one fifth of students whose parents are due to pay a contribution do not do so, or do not do so in full, and two thirds of students receive no extra support at all from their parents? Is he further aware that 22 per cent.—more than one fifth of students—have had to consider leaving university because of the financial hardship which they are suffering?

Mr. Forman

May I begin my reply in a conciliatory spirit by welcoming the hon. Member for Birmingham, Perry Barr (Mr. Rooker) to his new responsibilities on the Front Bench. Many of us on this side of the House think that he should have been there a long time ago.

It would be good to know whether the evidence that the hon. Gentleman quotes includes students who have applied for a standard student loan. The first question that he should ask is whether they have done so. Access funds are targeted at students in greatest need and the hon. Gentleman will know from his research that there is provision in certain cases—mature students and those with dependants or disabilities—for special help to be available through the social security system. The overall package of student support is generous in this country; indeed, it is more generous than in most of our competitor countries.

Dame Elaine Kellett-Bowman

Our excellent university of Lancaster has 10 applicants for every place available because we offer the courses that students want and have the fifth highest pass rate in the country. We are building more student accommodation.

Mr. Forman

I congratulate my hon. Friend on always speaking up for Lancaster university. I can vouch for the fact that it is an excellent institution. It was the first university that I visited when taking up my responsibilities, and I agree with the main points that my hon. Friend made.

Mr. John D. Taylor

Do students from other European Community countries studying at universities in the United Kingdom have a right of access to those student loans?

Mr. Forman

I shall need to let the right hon. Gentleman know about that and shall write to him accordingly.