§ Chris GraylingTo ask the Secretary of State for Education and Skills what estimate his Department has made of the amount of debt a student graduating in(a) 2004, (b) 2005 and (c) 2006 will have. [183643]
§ Alan JohnsonInformation on the total amount of debt on leaving higher education, including private sector debt, is not collected annually, although we do estimate it in successive student income and expenditure surveys. It will depend on a wide range of factors, including: whether an individual takes out a Government student loan; how much student loan they are eligible for; how many years they spend in HE over which to amass their debt; whether they take out any commercial debt or build up overdrafts; and whether they have any loans from family or friends. The latest 2002/3 Student Income and Expenditure Survey showed that students graduating in 2003 anticipated leaving with an average total debt of £8,666. During the passage of the Higher Education Act through Parliament we estimated that this might rise to an average debt of about £15,000, once students paying variable fees have graduated. The 2004/5 Student Income and Expenditure Survey—which is expected to report in early 2005—will provide an estimate of total debt on leaving HE for those graduating in 2004.
Individuals with government student loans leaving higher education in 2004–whether on course completion or withdrawal—will enter repayment status in April 2005. The average income-contingent student loan debt to government, for full-time students entering repayment status in April 2005, is estimated at around £7,700. Estimates for those entering repayment in April 2006 and 2007 are, respectively, around £8,000 and £9,000. Figures are reported in nominal prices including inflation.