§ Mr. WillisTo ask the Secretary of State for Education and Employment what would be the maximum a student studying for a B.Ed honours degree paying full tuition fees on the grounds of parental income could borrow under the student loan scheme; how much of the loan the student would be expected to repay in the first year of a teaching career; and how many years are permitted for the repayment of the whole of the loan. [22866]
§ Dr. HowellsThe maximum amount that a student can borrow will depend on the length of the course and the place of study, as well as the student's and his or her parents' or spouse's income. A student completing a four-year course outside London which began in 1999 who took out the full loan available each year might expect to have borrowed a total of between £10,470 and £13,710 in 1998 prices, depending on his or her individual, parental or spouse's income.
A typical graduate teacher earning £14,463 in the first year of his or her career (in 1998 prices) would be expected to repay about £33.50 per month, slightly less than 3 per cent. of income. The length of the repayment period for the whole of the loan would depend on the individual graduate's income throughout his or her career and on the total amount borrowed. The more the graduate earned, the quicker he or she would repay the loan. We estimate that a typical teacher might take around 11 years to repay.
Outstanding loans will be cancelled if borrowers have not repaid by the time they reach the age of 65, provided there has been no default.
§ Mr. WillisTo ask the Secretary of State for Education and Employment when the sale of the existing tranche of the Student Loan portfolio will be completed; and what level of subsidy to the private sector has been agreed. [22867]
§ Dr. HowellsFinal bids from the shortlisted bidders are due on Friday 16 January and the sale will be completed before the end of the financial year. The level of subsidy will depend on the outcome of the competition.