HC Deb 13 June 1995 vol 261 cc483-4W
Mr. Jim Cunningham

To ask the Secretary of State for Education on what basis student grants and loans are treated as income. [27940]

Mr. Boswell

Student grants and loans are not treated as income for the purposes of the Education (Mandatory Awards) Regulations.

Mr. Jim Cunningham

To ask the Secretary of State for Education what plans she has to consider the economic contribution that a student would provide after leaving education when fixing the level of student grants. [27944]

Mr. Boswell

The total resources in grant and loan available to students are a contribution to their living expenses while studying. It is for individual students to consider the likely benefits to them of investing in their own higher education, particularly by utilising the student loan facility.

Mr. Jim Cunningham

To ask the Secretary of State for Education what plans she has for alternative methods for former students to repay their student loans; and what alternatives have been considered by her Department. [27937]

Mr. Boswell

A number of methods of repayment were considered when the loans scheme was being established. The Government continue to keep all aspects of the scheme under review but have no current plans to alter the method of repayment.

Mr. Jim Cunningham

To ask the Secretary of State for Education what account she takes in the determination of the level of student grants of the level of income support and attached benefits; and what further plans she has in this regard. [27941]

Mr. Boswell

The benefit system, which exists to help those in involuntary difficulty, is not an appropriate means of support for most students. The total resources available to students through grants and loans has been uprated annually since 1990 in line with forecast inflation. The Government monitor student income and expenditure through regular surveys. The next survey will take place in 1995–96.

Mr. Jim Cunningham

To ask the Secretary of State for Education what proposals she has to increase financial support for students with families. [27938]

Mr. Boswell

Students with dependants are eligible for additional allowances as part of the means-tested mandatory award. The value of these allowances has again been uprated for 1995–96, in line with forecast price increases. Students who are lone parents remain eligible for social security benefits. The access funds can offer additional assistance to students in particular need.

Mr. Jim Cunningham

To ask the Secretary of State for Education what assessment she has made of the effectiveness of the present system of student grants in encouraging people into education. [27942]

Mr. Boswell

The present system of student grants and loans introduced in 1990 has been accompanied by increased participation. The number of home full-time undergraduates in Britain increased by over 50 per cent. in the five years between 1987–88 and 1992–93. Some 30 per cent. of young people now enter higher education, compared with only 15 per cent. in 1987. The number of mature home entrants to full-time undergraduates courses also rose by some 125 per cent. between 1987–88 and 1992–93.