§ Mr. GardinerTo ask the Secretary of State for Work and Pensions pursuant to his answer of 13 February 2003,Official Report, column 969W, on top-up fees, whether the projected repayment of student loans will be made on a calculation of net gross income. [101287]
§ Margaret HodgeI have been asked to reply.
Loans for fees would be repaid on the same basis as student loans for maintenance. Student loan borrowers are currently liable to repay their loans at a rate of 9 per cent. on all additional income over 10,000 a year. So for a graduate earning £15,000 they will repay at a rate of 9 per cent. on £5,000. The income taken into account in calculating student loan repayment is gross income (before deductions for tax, national insurance, or other payments deducted source, for example court orders).
We propose to increase the repayment threshold from £10,000 to £15,000 in April 2005.