§ Dr. HarrisTo ask the Secretary of State for Education and Employment what the cost to public funds has been of student loans provision in terms of(a) interest rate subsidies and (b) administration costs; and what default rate exists on that debt. [133117]
§ Mr. WicksThe data required to answer the question in full are not immediately available. I will write to the hon. Member as soon as possible after the data has been obtained.
§ Dr. HarrisTo ask the Secretary of State for Education and Employment what the net revenue yields would be for the next 10 financial years if those students taking out student loans in the academic year beginning September were to pay a real interest rate of(a) 1 per cent., (b) 2 per cent., (c) 3 per cent. and (d) 4 per cent. on their debt. [133103]
§ Mr. WicksThe following table provides an indication of the net revenue yields over the next ten financial years for four alternative real interest rates. Estimates relate only to the cohort of English and Welsh students expected to enter higher education in September 2000. Most typically these students will take out loans for three years, graduate in summer 2003, and begin repayments in April 2004. These are estimates based on a series of1066W assumptions such as: the numbers eligible for loans; the number and size of loans taken out; and the cohort's earning profile upon leaving higher education.
£ million Financial Net revenue yields1 assuming real interest rates of: year (a) 1 per cent. (b) 2 per cent. (c) 3 per cent. (d) 4 per cent. 2001–02 0 0 0 0 2002–03 0 0 0 0 2003–04 0 1 1 1 2004–05 2 4 6 8 2005–06 1 2 4 5 2006–07 1 2 2 3 2007–08 4 8 12 15 2008–09 6 12 17 22 2009–10 8 19 29 39 2010–11 12 23 33 43 1 Net revenue yields have been calculated as the difference between forecast repayments under current policy (zero per cent. real interest) and forecast repayments given each of the higher rates of interest (a) to (d)