§ Mr. BoswellTo ask the Secretary of State for Education and Skills, what the(a) stock and (b) net annual investment is of student loans; and what the additional cost would be at full market rate of interest. [79851]
§ Margaret HodgeAt the end of the 2000–01 financial year there were some 2,253,000 borrowers with student loans, either mortgage style or income contingent. This 735W includes 705,000 borrowers with loans which have been sold to the private sector. The total amount outstanding on student outlay was £7,833.2m of which £1,789.9m was in respect of loans sold to the private sector.
The resource cost for student loans issued in the 2000–01 financial year was estimated to be £794m.
Student loans are charged interest at the rate of inflation. A full market rate of interest would be higher and would not increase the costs to public funds. It would, however, increase the total amount repaid by HE leavers and graduates. It would also increase the time taken to repay their loans and the likelihood of loans being written off.
§ Annabelle EwingTo ask the Secretary of State for Education and Skills (1) what discussions he has had with the Scottish Executive regarding his Department's review of post-16 student support; [78782]
(2) what discussions he has had with the Scottish Executive regarding the interest rate on student loans. [78779]
§ Margaret HodgeMy right hon. Friend, the Secretary of State has had no such discussions so far.