§ Mrs. FyfeTo ask the Secretary of State for Scotland what would be the full amount of a student loan to be repaid, assessing the current rate of interests, if a student currently in the first year of a three-year course applied for the maximum loan in each of these years; and what is 651W his forecast for the total loan for a three-year course beginning in 1995 and subsequent years for which calculations on present information can be made.
§ Lord James Douglas-HamiltonThe figures requested are set out in the table. In order to estimate them it has been necessary to make certain assumptions, the basis for some of which will be subject to review from time to time.
The main assumptions used in estimating the figures are:
- (i) The move to broad parity between grants and loans for student maintenance will continue and will be achieved in academic year 1996–97;
- (ii) the value of the student maintenance provision will be increased in line with forecast price increases;
- (iii) movements in the retail prices index will be consistent with those underlying the Budget statement in November 1994;
- (iv) the students concerned are studying away from home outwith the London area; and
- (v) repayments commence in the April following completion of the course.
Table 1: Total level of debt for student on a three year course Course beginning in academic year: Estimated total debt as at April following graduation 1994–95 £4,000 1995–96 £4,500