§ Mr. KynochTo ask the Secretary of State for Scotland if he will give details of any changes in the student support and tuition fee arrangements for Scottish domiciled students in session 1994–95.
§ Lord James Douglas-HamiltonI am publishing today the main rates of maintenance allowances payable under the students allowances scheme and the postgraduate students allowances scheme, including rates for those courses which do not attract student loans, together with the rates of various supplementary allowances payable to both undergraduate and vocational postgraduate award holders.
The support available to undergraduate students in 1994–95 through the main rates of maintenance grant and loan, taken together, will be 4 per cent. higher than in 1993–94, thus maintaining its value in real terms. Within that total, the main loan rates will be on average 44 per cent. higher than in 1993–94, offset in part by a reduction in the main rates of maintenance grant. The Government believe in principle that a higher share of the maintenance costs of higher education should be borne by graduates, now that student numbers have expanded so rapidly. No students will, however, be required to begin paying back their loans until after they leave their course and are earning more than 85 per cent. of national average earnings —currently about £14,000 per annum.
Tuition fees will continue to be reimbursed to institutions through the student support system on behalf of eligible students. The maximum rate of reimbursement will be reduced by 45 per cent. in each of the three subject bands for undergraduate courses in order to ensure that planned numbers are not exceeded. Higher education institutions will be compensated through grant in aid payable by the Scottish Higher Education Funding Council.
These changes are consistent with those for England and Wales announced by my right hon. Friend the Secretary of State for Education. Details have been placed in the Library.