HC Deb 04 July 1989 vol 156 cc117-9W
16. Mr. Simon Hughes

To ask the Secretary of State for Education and Science what the cost of introducing top-up loans for students will be over the next 15 years assuming a yearly average inflation rate of 8 per cent.

Mr. Jackson

The Government do not expect inflation to remain at that level. The table shows the costs and savings associated with the introduction of top-up loans, on the hypothetical basis of 8 per cent. inflation annually from 1990. It is otherwise on the same basis and in the same format as the figures set out in annex E of Cm 520.

Costs and savings of top-up loans with 8 per cent, inflation
(£ million, 1990 prices)
Net change in grant Net change in benefits Gross loan outlay Loan repayments PSBR effect
1990 0 -65 167 0 103
1991 -53 -64 234 -2 114
1992 -100 -63 290 -9 117

Net change in grant Net change in benefits Gross loan outlay Loan repayments PSBR effect
1993 -142 -62 340 -23 113
1994 -180 -61 386 -45 100
1995 -214 -60 428 -75 79
1996 -248 -60 470 -106 56
1997 -285 -61 520 -136 38
1998 -293 -63 535 -163 16
1999 -300 -64 548 -186 -3
2000 -302 -65 552 -206 -21
2001 -302 -65 552 -231 -46
2002 -302 -65 552 -262 -77
2003 -302 -65 552 -284 -99
2004 -302 -65 552 -296 -111
2005 -302 -65 552 -303 -118
2006 -302 -65 552 -303 -118
2007 -302 -65 552 -297 -112
2008 -302 -65 552 -300 -115
2009 -302 -65 552 -317 -133
2010 -302 -65 552 -339 -154
2011 -302 -65 552 -354 -169
2012 -302 -65 552 -364 -179
2013 -302 -65 552 -376 -191
2014 -302 -65 552 -385 -200
2015 -302 -65 552 -392 -207
2016 -302 -65 552 -397 -212
2017 -302 -65 522 -402 -217
2018 -302 -65 522 -405 -220
2019 -302 -65 552 -406 -222
2020 -302 -65 552 -410 -225
2021 -302 -65 552 -415 -230
2022 -302 -65 552 -420 -235
2023 -302 -65 552 -422 -237
2024 -302 -65 552 -422 -237
2025 -302 -65 552 -422 -237
2026 -302 -65 552 -422 -237
2027 -302 -65 552 -422 -237

18. Mr. Maxton

To ask the Secretary of State for Education and Science if he will make a further statement on the costs of the proposed student loan scheme in respect of administration, defaults and interest subsidy.

48. Dr. Moonie

To ask the Secretary of State for Education and Science if he will make a statement on the costs of the proposed student loan scheme in respect of administration, defaults and interest subsidy.

62. Mr. McAllion

To ask the Secretary of State for Education and Science if he will make a statement on the costs of the proposed student loan scheme in respect of administration, defaults and interest subsidy.

Mr. Jackson

I refer the hon. Members to my answer of 26 June to the hon. Member for Oxford, East (Mr. Smith) at columns290–91.

26. Mr. Andrew MacKay

To ask the Secretary of State for Education and Science if he has received further representations on student loans following his statement of 19 June,Official Report, columns 21–33.

Mr. Jackson

I refer my hon. Friend to the reply given by my right hon. Friend to the hon. Member for Burnley (Mr. Pike) earlier today.

39. Mr. Win Griffiths

To ask the Secretary of State for Education and Science when he expects to make public the participants in, and detailed proposals of, the arrangements for administering top-up loans for students.

Mr. Jackson

My right hon. Friend will announce further details of the arrangements for administering top-up loans in due course.

44. Mr. Strang

To ask the Secretary of State for Education and Science what estimate he has made of the cost of administering in its first year his student loan scheme.

Mr. Jackson

The preparatory work mentioned in my right hon. Friend's statement on 19 June,Official Report, columns 21–22 indicates administrative costs, excluding start-up costs, of between £8.5 million and £11.5 million in the first year in which top-up loans are available.

58. Mr. Doran

To ask the Secretary of State for Education and Science if he will make a statement on the representations he has received in relation to the effect of the proposed student loans scheme on higher education in Scotland.

Mr. Jackson

We have considered carefully the representations we have received, particularly in relation to the longer Scottish courses. We have concluded that a loan facility for each year of a course is the right approach. Many students opt for higher education in Scotland rather than the shorter English degree, and we have no doubt that that will continue to be the case.

59. Dr. Reid

To ask the Secretary of State for Education and Science if he will make a further statement regarding the likely effect of top-up loans on access to higher education.

Mr. Jackson

The Government's education policies are designed to increase educational attainment at all levels, and to increase access to higher education. Top-up loans will offer students an additional source of funds while they are studying, and combined with the effect of the Government's other policies will enable there to be increased participation in higher education in the future.

Mr. Nigel Griffiths

To ask the Secretary of State for Education and Science how the proposed company for the administration of private sector loans to students is to be publicly accountable.

Mr. Jackson

The Department will have a permanent directorship on the board of the company, and we shall take such other steps as may be appropriate to ensure accountability.

Mr. Andrew Smith

To ask the Secretary of State for Education and Science if he will make available a copy of the Price Waterhouse study of his proposed student top-up loans scheme.

Mr. Jackson

The document was commissioned by the Committee of London and Scottish Bankers as an initial feasibility study. I hope to place copies of the report in the Library shortly.