§ Mr. Jim CunninghamTo ask the Secretary of State for Education (1) what were the factors and figures taken into account in the student income and expenditure survey for 1992–93;
(2) how the figures for commercial borrowing for student loans in the year 1992–93 were calculated for students under the age of 26 years;
(3) what information he has on whether borrowing by mature students is higher than by younger students; and what assessment he has made of the reasons for the difference in levels of borrowing between those groups.
§ Mr. BoswellCopies of the "Student Income and Expenditure Survey" for the 1992–93 academic year were placed in the Library when it was published on 16 December 1993. The survey took account of income from grants, student loans, money and gifts from parents, earnings, social security benefits, commercial loans, withdrawals from savings, and of income from other sources such as investments. Account was taken of expenditure on housing costs, food, travel and other course-related expenses, leisure and entertainment, clothes and goods and services.
Sampled students were asked what interest-bearing loans they had taken out during the 1992–93 academic year, either from a bank or other financial institution or privately, and how much had been repaid. They were also asked about any overdraft held at the start of the year or expected to be taken out during the year, and how much they expected to be overdrawn at the end of the year.
The figures published in the survey for overdrafts for younger students show the amounts at the start and at the end of the year, but it is the change in the overdraft balance which is used as a component of student income. The survey showed significant differences in the patterns and levels of borrowing between different groups of mature students as well as between these groups and younger students. Students were not asked their reasons for borrowing money.
§ Mr. Jim CunninghamTo ask the Secretary of State for Education to what extent he has taken into account the net change in the overdraft balance bill when he assesses student debts, particularly in the final year; and what assessment he has made of what the final figure would be if the net change in the overdraft balance figures were taken into account.
§ Mr. BoswellMy right hon. Friend collects no information about individual students' debts or overdrafts. The "Student Income and Expenditure Survey" included questions to students in the sample about overdrafts. A copy of the report of the survey, commissioned by the Department, was placed in the Library on 16 December.
My right hon. Friend keeps the repayment arrangements for student loans under review. He believes it right that students should contribute towards their own maintenance costs. The repayment terms of the student loan facility are generous. Graduates can defer repayments for a year at a time if their income is below 85 per cent. of average earnings. For those with incomes above that level—currently about £14,000 a year—the level of repayments should be manageable.
§ Mr. Jim CunninghamTo ask the Secretary of State for Education if he will conduct an analysis of mature student borrowing by year of course undertaken.
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§ Mr. BoswellMy right hon. Friend does not propose to undertake such an analysis.