§ Dr. CableTo ask the Secretary of State for Education and Skills how many career development loans have been allocated since 1998; how many applications have776W been refused since 1998; what the total sum issued since 1998 has been; how much remains outstanding; how much has been recovered via debt agencies and court orders; how much has been defaulted; and if he will make a statement. [88837]
§ Margaret HodgeCareer Development Loans (CDLs) are deferred repayment commercial bank loans designed to help individuals, who may not otherwise be able to afford or have access to funds to pay for vocational education and learning. The DfES operates the programme in partnership with three high street banks and pays the interest on the loan for the period of training covered by the CDL. For the period 1 January 1998 to 31 December 2002, 79,641 loans have been taken out with a value of £316 million. As at 31 December 2002, £94 million remained outstanding for payment of interest by the Department and this value will continue to reduce over time. The amount that has been defaulted is £24 million and £2.6 million has been recovered so far. This reflects a net default rate of 7 per cent. compared to the 15 per cent. maximum operating limit agreed with the banks to cover the higher level of risk they take in making these particular loans. The exact number of applications refused by the banks is not known. The refusal rate varies between the banks, but the overall rate is around 25 per cent. of applications received.