STUDENT LOANS

HL Deb 23 November 1994 vol 559 cc7-8WA

Earl Russell

asked Her Majesty's Government:

What is the present rate of recovery on Student Loans.

Lord Lucas

Under the student loans scheme, borrowers become liable to start repayment of loans in the April after they finish their course or cease to attend it. They may seek to defer repayment if their gross income does not exceed 85 per cent. of national average earnings, currently almost £14,600. As at 31st October 1994, 43 per cent. of those liable to repay loans had been granted deferment.

At 31st October 1994, 94.4 per cent. of borrowers not granted deferment were repaying and 93.5 per cent. of monies due had been repaid. It is estimated that by the end of the financial year the comparable figures will be 96.1 per cent. and 94.5 per cent. respectively. The Department for Education's Supply Estimates presented to Parliament for 1994–95 show estimated receipts from repayments of £27 million.