Student Loans (Hansard, 18 July 2003)

§ Mr. Willis
To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July,Official Report, column 439–40W, what the value is of student loans where repayments have been made early in each year since the scheme began; and what the amount is as a percentage of the total amount repaid. [126081]
768W

§ Alan Johnson
[holding answer 16 July 2003]: The value of student loans in the UK where repayments have been made earlier than required since the beginning of the scheme, and the percentage this represents of the total amount repaid are shown in the table:

Financial year Repaid earlier than required^{1, 2,}(£ million) Repaid earlier than required as a percentage of all repayments^{1, 2, 4}

1990–91 ⁵— ⁵—

1991–92 0.9 75

1992–93 2.8 47

1993–94 5.0 35

1994–95 6.5 24

1995–96 10.7 21

1996–97 18.1 21

1997–98³ 28.9 22

1998–99³ 25.7 19

1999–2000^{3, 6} 33.4 26

2000–01^{2, 3, 6, 7} 43.2 24

2001–02^{2, 3, 6, 7} 63.9 24

¹ The table covers both mortgage style and income contingent loans. Early repayments of Income Contingent loans are made directly to the Student Loans Company whether or not the borrower is making repayments through the taxation system.

² There is a discontinuity in the time series due to a change in the Student Loans Company's business process in December 2000 early repayments include those which do not necessarily settle the account in full.

³ Two portfolios ofstudent loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the publicly owned debt only.

769W
⁴Repayments of income contingent loans through the tax system are reported at the time when Student Loans Company is notified of the repayments by Inland Revenue, which may be one of more years after the tax year they relate to.
⁵ Not applicable
⁶Discontinuity in time series
⁷ Provisional.

§ Mr. Willis
To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July,Official Report, column 439–40W, what the total value is of student loans where repayment has been deferred in each year since the scheme began. [126082]

§ Alan Johnson
[holding answer 16 July 2003]: The table shows the cumulative balance at the start of each financial year of mortgage style student loans in the UK and in public ownership where repayment has been deferred. There is no concept of deferment from those with income contingent loans who repay through the tax system—repayments are not collected from those earning below the threshold, i.e. £10,000 in financial year 2001–02.

Financial year Balance in Deferment (£ million)

1990–91 ³—

1991–92 ⁴—

1992–93 ⁴—

1993–94 ⁴—

1994–95 40

1995–96 118

1996–97 247

1997–98 468

1997–98 468

1998–99 447

1999–2000 466

2000–01⁵ 672

2001–02⁵ 909

¹ The table shows the cumulative balance of loans in deferment at the start of each financial year; the balance is the amount of dererment and the sum not yet due for repayment but excluding any amount repaid. For loans deferred with arrears, the value of arrears has been excluded.

² Two portfolios of student loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the public debt only.

³ not applicable.

⁴not available.

⁵Provisional.

Source
Student Loans Company

§ Mr. Willis
To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July 2003,Official Report, column 439–40W, what the total value is of loans where inability to repay has been cancelled in each year since the scheme began. [126083]

§ Alan Johnson
[holding answer 16 July 2003]: The sable shows the total value of student loans in the UK and in public ownership which have been written off or cancelled in each financial year.

Amount written off/cancelled^{1, 2, 3}

Financial year (£ million)

1990–91 ^4—

1991–92 ^5—

1992–93 0.1

1993–94 0.2

1994–95 0.3

770W

Amount written off/cancelled^{1, 2, 3}

Financial year (£ million)

1995–96 0.5

1996–97 0.9

1997–98 1.0

1998–99 of which: 0.9

Income contingent loans ⁶—

1999–2000⁷ of which: 1.2

Income contingent loans ⁵—

2000–01⁸ of which: 1.1

Income contingent loans 0.2

2001–02⁸ of which: 1.4

Income contingent loans 0.4

¹ The table shows the value of loans cancelled or written off during each financial year.

² Two portfolios of student loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the public debt only.

³ A cancelled loan is one where the borrower no longer has any liability to repay as set out by legislation. A borrower's liability to repay shall be cancelled: on death of the borrower; after 25 years or when the borrower reaches the age of 50 (60 if the borrower was aged over 40 when he/she last borrowed), whichever is the earlier, provided the borrower is not in default; and if the borrower is in receipt of a disability related benefit and permanently unfit for work. A written off loan is one where the borrower remainsliable to repay but recovery is deemed unlikely by the loan administrator or not possible by legal judgment.

⁴ Not applicable.

⁵ Nil/negligible.

⁶ Not available.

⁷ Amounts written off in1999–2000 include some transactions

⁸ Provisional.

Financial year	Repaid earlier than required^{1, 2,}(£ million)	Repaid earlier than required as a percentage of all repayments^{1, 2, 4}
1990–91	⁵—	⁵—
1991–92	0.9	75
1992–93	2.8	47
1993–94	5.0	35
1994–95	6.5	24
1995–96	10.7	21
1996–97	18.1	21
1997–98³	28.9	22
1998–99³	25.7	19
1999–2000^{3, 6}	33.4	26
2000–01^{2, 3, 6, 7}	43.2	24
2001–02^{2, 3, 6, 7}	63.9	24
¹ The table covers both mortgage style and income contingent loans. Early repayments of Income Contingent loans are made directly to the Student Loans Company whether or not the borrower is making repayments through the taxation system.
² There is a discontinuity in the time series due to a change in the Student Loans Company's business process in December 2000 early repayments include those which do not necessarily settle the account in full.
³ Two portfolios ofstudent loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the publicly owned debt only.

Financial year	Balance in Deferment (£ million)
1990–91	³—
1991–92	⁴—
1992–93	⁴—
1993–94	⁴—
1994–95	40
1995–96	118
1996–97	247
1997–98	468
1997–98	468
1998–99	447
1999–2000	466
2000–01⁵	672
2001–02⁵	909
¹ The table shows the cumulative balance of loans in deferment at the start of each financial year; the balance is the amount of dererment and the sum not yet due for repayment but excluding any amount repaid. For loans deferred with arrears, the value of arrears has been excluded.
² Two portfolios of student loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the public debt only.
³ not applicable.
⁴not available.
⁵Provisional.

	Amount written off/cancelled^{1, 2, 3}
Financial year	(£ million)
1990–91	^4—
1991–92	^5—
1992–93	0.1
1993–94	0.2
1994–95	0.3