§ Mr. CousinsTo ask the Secretary of State for Education and Skills what the average size of student loan on entering repayment status was in the last year for which figures are available and; what the average loan taken out in 1999–2000 to 2001–02 was in(a) each region of England, (b) the county of Tyne and Wear and (c) the City of Newcastle-upon-Tyne. [141194]
§ Alan JohnsonThe table shows the average student loan debt at the point at which they entered repayment status for borrowers who became liable to repay their loans in financial year 2003–04.
Average student loan debt on entering repayment status in financial year 2003–041
£ Mortgage Style loans2 6,070 Income Contingent loans3 7,170 Part-time loans4 650 1Data rounded to nearest £10. Include interest accrued up to the point of entering repayment status. Exclude any early voluntary repayments which may have been made before borrowers enter repayment 190W status in the April following their graduation or otherwise leaving their course. Borrowers may have accounts in more than one cohort year of entering repayment.
2Loans made to students who entered higher education up to 1997/98 or who entered in 1998/99 under existing arrangements. Includes loans repayable to the private sector following the sale of two tranches of student loans.
3Loans repayable on an income contingent basis, available to students who entered higher education from academic year 1998/99. These loans were subject to a repayment holiday until April 2000. Includes hardship loans.
4Fixed-rate loans made to eligible part-time students, introduced in September 2000.
Source
Student Loans Company
Borrowers entering repayment status include those who attended shorter courses as well as those who have left higher education before completing their courses. Therefore the average level of debt will not be representative of the average debt experienced by those who complete their courses.
Borrowers are liable to repay their loans from the April following graduation or otherwise leaving their course. Most borrowers who started their course from the 1998/99 academic year will repay income contingent loans. Loans for those who started their course before 1998/99 are repayable on a mortgage style basis.
The table shows the average full-time income-contingent loan taken out by students in the English Government Office Regions, Tyne and Wear and Newcastle upon Tyne.
Average income-contingent1,2,3 loan taken out by domicile of student—academic years 1999/2000, 2000/01 and 2001/024
£ Academic rear 1999/2000 2000/015 2001/02 Government Office Region6 North East 3,060 3,020 3,060 North West 3,130 3,090 3,130 Yorkshire and Humberside 3,110 3,080 3,130 East Midlands 3,190 3,120 3,170 West Midlands 3,140 3,090 3,150 East of England 3,180 3,150 3,190 Inner London 3,540 3,470 3,500 Outer London 3,240 3,200 3,240 South East 3,180 3,130 3,160 South West 3,240 3,190 3,250 Tyne and Wear7 3,000 2,990 3,020 Newcastle upon Tyne 3,050 3,020 3,030 1Loans available to students who entered higher education from September 1998, excludes the fixed rate loans (£500) for eligible part-time students, introduced in September 2000.
2Mandatory award holders, i.e. those eligible for mortgage style loans, made applications for student loans through their education institution; data are therefore not available for these students.
3Data have been taken from available data and may include a small number of loans which have been authorised for payment but not paid.
4Figures have been rounded to the nearest £10.
5The apparent fall in the average value of income-contingent loan taken out in 2000/01 can be explained mainly by the fact that this was the third year of this loan scheme; students on the third year of a three year course will receive the final year rate of loan which is at a lower rate as it does not cover the summer vacation. This effect is not present in 1999/2000 and has been levelled out in the years subsequent to 2000/01. Additionally, this is likely to be the 191W first year in which those students on sandwich courses have their placement year and are therefore in receipt of the reduced rate of loan.
6Government Office Region of domicile of student.
7The Metropolitan County of Tyne and Wear was abolished in 1996; it comprised Gateshead, Newcastle upon Tyne, North Tyneside, South Tyneside and Sunderland.
Source
Student Loans Company
Data on the domicile of students taking out fixed rate mortgage style loans (normally those who entered higher education before 1998/99) are not available because applications are made through their education institution.
§ Mr. WebbTo ask the Secretary of State for Education and Skills whether student loan repayments made via the Inland Revenue are immediately credited to individual loan accounts; how frequently the interest on student loan accounts is calculated; and if he will make a statement. [141525]
§ Alan JohnsonStudent loan repayments are collected by the Inland Revenue mostly through PAYE and the data is transmitted to the Student Loan Company after the end of each tax year. At that stage, repayments are credited to the student's loan account as at the date they were collected. Interest on student loans is calculated annually, set every year from 1 September based on the Retail Prices Index published in April for the previous year.