§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what has been the total cost to public funds of the Student Loans Company to date; and what is his estimate of the total cost for the whole of the current and the next financial year.
Mr. JacksonMy right hon. Friend will make a statement shortly on the administrative costs of the student loans scheme.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what assistance his Department or the Student Loans Company has enlisted from consultants in(a) management, (b) information technology, (c) advertising, (d) marketing and (e) public relations, in respect of the student loans scheme in the current year; and at what cost.
Mr. JacksonRelationships between the Student Loans Company and its suppliers are commercially confidential. The Department has not separately received consultancy advice on the student loans scheme in the current year.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if he will estimate how long after application students can expect to wait until they receive a loan from the Student Loans Company.
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Mr. JacksonThe Student Loans Company's objective will be to make the great majority of loan payments within 21 days of receipt of correctly completed eligibility certificates and application forms. The company's success in meeting that objective will depend upon the speed with which students return the loan agreement forms which they will be sent once their application forms have been processed.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what communications will take place between the Students Loans Company and the bank branch holding an individual student loan applicant's current account; and for what purpose.
Mr. JacksonThe Student Loans Company will make loan payments into students' bank or building society accounts by electronic transfer, through the bankers' automated clearing services and will receive repayments by direct debit from borrowers' accounts. The company will have no other contact with banks or building societies holding students' current accounts.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if he will list(a) the banks which have participated in any discussions with the Student Loans Company in the current year, (b) those banks which have not yet participated and (c) those banks which have refused to participate.
Mr. JacksonDiscussions between the Student Loans Company and other financial insitutions are strictly and mutually confidential.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if a student in agreeing to the terms and conditions of a student loan authorises the Student Loans Company to make future searches on their income, via employers and banks.
Mr. JacksonThe terms and conditions of a loan agreement will not authorise the Student Loans Company to investigate borrowers' incomes through their employers or banks. Borrowers wishing to defer repayments will be required to produce evidence that their income falls below 85 per cent. of national average earnings.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what consultations his Department has had with the National Union of Students in respect of administration of the student loans scheme.
Mr. JacksonThe National Union of Students has been kept informed of developments in the student loans scheme. Officials will be meeting shortly to discuss the scheme.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science (1) how the Student Loans Company proposes to ensure that student loan applicants' referees maintain regular contact between the Student Loans Company and the student over the repayment period;
(2) if a student loan applicant who fails to find a referee will be refused a loan.
Mr. JacksonThe Student Loans Company will not ask loan applicants to nominate referees. The company will ask applicants to nominate on the applications form two504W individuals, one of whom should be a relative or guardian, who can be contacts in the event of the company losing touch with the borrower. If the application forms are not fully completed, applicants will not receive a loan.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if his Department has yet agreed a system of student certification for the purpose of a student loan application with institutions of higher education.
Mr. JacksonThe duties of academic institutions are set out in regulation 10 of the Education (Student Loans) Regulations, laid before Parliament on 13 June. Representatives of the Student Loans Company and the Education Departments will be holding a nationwide series of meetings with the higher education institutions in the next two weeks to help the institutions prepare for their role in the scheme.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if his Department will be reimbursing the total administrative cost of student certification for the purpose of a student loan application; and if he will estimate that cost in the current and the next financial year.
Mr. JacksonThe Student Loans Company will make a payment to academic institutions of £3.50 for each eligibility certificate which is correctly completed on its first submission to the company. The total administrative cost will depend upon the number of students who seek certification of eligibility and on the number of correctly completed certificates.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science if he will publish the itinerary of visits to be undertaken by the three higher education liaison officers appointed by the Student Loans Company.
Mr. JacksonThe role of the academic liaison officers is to help institutions fulfil their responsibilities under the legislation governing the student loans scheme. To that end, the liaison officers have already visited a wide range of institutions; are meeting representatives of institutions at regional meetings in the next two weeks; and will, on request, visit any institution with eligible students.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what guarantees have been offered to staff of the Student Loans Company in the event of a change of Government policy on student finance.
Mr. JacksonNone. Staff of the Student Loans Company are employed under arrangements which reflect current practice in the commercial sector.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science when students can start to apply for a loan from the Student Loans Company.
Mr. JacksonStudents will be able to apply for a loan as soon as they have been certified as eligible by their academic institution.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science when is the deadline for application for a loan from the Student Loans Company; and whether students who apply for a loan which is less than that to which they are entitled can later apply for the remainder.
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Mr. JacksonFor the academic year 1990–91, the Student Loans Company will issue loans in respect of loan agreements received by the company by 31 July 1991. Eligible students may make one application for a loan each academic year; they may draw down the loan in up to three instalments.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what discussions the Student Loans Company has had with the clearing banks in respect of the payment and repayment of student loans.
Mr. JacksonThe Student Loans Company will make loan payments and receive repayments through the bankers' automated clearing services. These arrangements have been discussed with the company's bankers.
§ Mr. Andrew SmithTo ask the Secretary of State for Education and Science what is his latest estimate of student take-up of the student loans scheme.
Mr. JacksonFor planning purposes, the Government continue to assume an 80 per cent. take-up rate of student loans.