§ Andrew MackinlayTo ask the Secretary of State for Education and Skills if she will make a statement on the average level of graduate debt, broken down by social class. [49808]
§ Margaret Hodge[holding answer 17 April 2002]: The average debt of a borrower with a mortgage-style student loan taken out under the previous Government's student support arrangements starting repayment status in 1999–2000 was £3,210. The amount available to students through student loans has increased under the loan-based support system introduced in August 1998. So the average debt of a borrower with a new income-contingent loan entering repayment status in April 2002 has increased and is estimated to be some £6,100. Repayments of income-contingent loans will be linked to graduates' income after leaving higher education so they repay only when their income exceeds the threshold of £10,000 per annum. Interest on student loans is linked to inflation so that borrowers repay, in real terms, only the amount borrowed. The data are not available by social class.