Lord Lucasasked Her Majesty's Government:
With reference to the present student loans system, what is the cost of administering it; what is the current rate of non-payment; and how many people it deters from taking up places in higher education.
§ Baroness BlackstoneThe total grant in aid to the Student Loans Company in financial year 1996–97 was £21.28 million. At 31 March 1997, 49 per cent. of graduates were deferring repayment of around £465 million and 9.3 per cent. of graduates owing some £10.8 million were in default or in arrears. Only 9.2 per cent. of students entering higher education are from social classes IV and V, compared with 53.7 per cent. from classes I and II.