HC Deb 14 February 2001 vol 363 cc159-60W
Mr. Boswell

To ask the Secretary of State for Education and Employment at what point of net income in tax year 2000–01 a graduate repays more in old-style mortgage loan than in new-style income-contingent loan. [149799]

Mr. Wicks

[holding answer 13 February 2001]Assuming a student loan debt of £5,000 and repayment of a mortgage-style loan over a five-year period, a graduate liable to repay a mortgage-style loan would repay more of that loan each year until annual gross pay of £21,111 was reached. Repayment thresholds for both types of loan are based on gross pay, not net.

Mr. Llwyd

To ask the Secretary of State for Education and Employment what the average amount of student debt was in each of the last five years. [149454]

Mr. Wicks

Data from the Department's Student Income and Expenditure Surveys show that the average debt of full-time students in higher education in the UK was £840 in 1995–96 and £2,530 in 1998–99, after their savings had been taken into account. The debt figures include student loans, commercial loans and overdrafts as well as informal loans from family and friends. Data for the intervening and more recent years are not available from the survey.

Since 1998–99 students entering higher education have been eligible for income-contingent student loans. These are interest-free in real terms and repayment is linked to income so that graduates repay only when they can afford to do so.