§ Mr. ÖpikTo ask the Secretary of State for Education and Employment what plans he has to allow endowment mortgages to be counted against income in the calculation of tuition fees payable at university; and if he will make a statement. [45786]
346W
§ Dr. HowellsUnder the Mandatory Awards Regulations, in assessing the income of a student who is independent of their parents, a local education authority has discretion to take account of payments made in pursuance of any obligation, such as a mortgage, incurred before the start of their course. Where a student's parents or spouse is expected to contribute towards the support of the student, the gross amounts of any interest paid on loans, including mortgages, which attract tax relief are deducted from their income in assessing the size of their contribution.
For new students in 1998–99, the contribution to the student's support from their own income or that of their parents or spouse is first set against their £1,000 contribution to their tuition fees and any remaining amount goes towards the student's maintenance support.
We are examining the case for reviewing certain aspects of the assessment of contributions by students, their parents and their spouses towards the student's maintenance support.