HC Deb 19 October 1999 vol 336 cc530-1W
Mr. Boswell

To ask the Secretary of State for Education and Employment what is the starting-point of annual income for the repayment of student loans which are in (a) income-contingent and (b) old-style mortgage loans. [94743]

Mr. Wicks

The starting point of annual income for the repayment of student loans which are income-contingent will be £10,000; the starting point of annual income for the repayment of student loans which are old-style mortgage loans is £18,192 in academic year 1999–2000. The repayment of income-contingent loans will be fairer than mortgage-style because it will be tied closely to income. Repayments will be based on 9 per cent. of income over £10,000 a year so that repayments will increase or decrease in line with changes in income. The repayment of mortgage style loans above the threshold is not income-contingent. A fixed proportion of the loan has to be repaid each year: someone earning £20,000 a year will repay the some monthly sum as someone earning £40,000.

Mr. Boswell

To ask the Secretary of State for Education and Employment when he will announce arrangements for the extension of loans to part-time students. [94745]

Mr. Wicks

My noble Friend the Minister for Education and Employment announced on 29 January that from 2000–01 we would make loans available to part-time students on low incomes to help with the costs of study, and would announce details later this year. The Department is now analysing information from the Student Income and Expenditure Survey, and will make a further announcement before Christmas.

Mr. Boswell

To ask the Secretary of State for Education and Employment how many students hold means-tested loans; and what is their overall value. [94744]

Mr. Wicks

The Student Loans Company has informed me that at 15 October 1999, cheques have been issued to 325,000 students under the new student support arrangements. The total value of the loans was approximately £346 million. These figures are for the United Kingdom.

Mr. Boswell

To ask the Secretary of State for Education and Employment what representations he has received about delays in the delivery of student loan cheques following their arrival at college for the autumn term. [94675]

Mr. Wicks

To date, my Department has received one e-mail about delays in the delivery of this term's student loan cheques. Students who applied on time and provided the necessary documentation should have received their cheques: that is a considerable achievement by all concerned.