§ Baroness Sharp of Guildfordasked Her Majesty's Government:
What estimate has been made of the cost of raising the threshold for repayment of income contingent student loans to (a) £13,000; (b) £15,000; and (c) £17,000 at each of the following real interest rates: (i) 0 per cent; (ii) 1 per cent; and (iii) 2 per cent annually for the years up to 2004–5 assuming student numbers continue on current trends and the proportion of income taken remains at the current level. [HL4014]
§ Baroness BlackstoneWe have said that we will review the repayment threshold for income contingent loans from time to time, but have no immediate plans to do so. We have not yet made an estimate of the cost of raising the threshold. We remain committed to applying a rate of interest to student loans equivalent to RPI so that borrowers repay no more in real terms than they have borrowed.