§ Mr. WillisTo ask the Secretary of State for Education and Employment, pursuant to his answer to the hon. Member for Truro and St. Austell (Mr. Taylor) of 9 February 2001,Official Report, column 764W, if he will estimate the nominal rate of interest required to hold the net present value of student loans at £590 million if the threshold of student loans repayment were increased to £15,000. [157872]
§ Mr. Wicks[holding answer 10 April 2001]: The net present value of the estimated £982 million income contingent loans issued in 1999–2000 to students domiciled in England and Wales is estimated to be £590 million. The nominal rate of interest required to maintain this net present value with a threshold for repayment of £15,000 per year is estimated to be around 4½ per cent.