§ Mr. Bryan DaviesTo ask the Secretary of State for Education and Employment what is the expected total income from the sale of student loan debt; and what is the estimated effect on public sector borrowing requirement in(a) 1997–98, (b) 1998–99 and (c) 1999–2000. [7133]
§ Mr. ForthThe total income is dependent on the outcome of the forthcoming competition and negotiations. The Government's plans assume that some £1,500 million of debt will be sold in each of the three years. The effect on the public sector borrowing requirement and the exact quantum sold will depend on the final structure of the sale.
§ Mr. DaviesTo ask the Secretary of State for Education and Employment what percentage of total outstanding student loan debt will be sold to the private sector in 1997–98 and in each subsequent year. [7132]
§ Mr. ForthThe total to be sold will depend on the forthcoming competition. Current plans assume that about half the debt then outstanding will be sold by the end of 1997–98 and about 80 per cent. of total accrued debt by 1999–2000.
§ Mr. DaviesTo ask the Secretary of State for Education and Employment what estimates she has made of the(a) gross outlay on student loans and (b) repayment of student loans in 1997–98, 1998–99 and 1999–2000. [7130]
§ Mr. ForthThe estimated England and Wales, rounded, figures are:
£ millions Financial year 1997–98 1998–99 1999–2000 Gross loan outlay 895.8 973.2 994.5 Repayments of principal 93.8 144.1 211.2
§ Mr. DaviesTo ask the Secretary of State for Education and Employment what provision will be made in her plans for the sale of student loan debt for(a) default and (b) deferment rates on repayments. [7131]
§ Mr. ForthThe financial impact of projected default and deferment rates will be subject to negotiation with prospective bidders.