HC Deb 28 October 2002 vol 391 cc570-1W
Mr. MacDougall

To ask the Secretary of State for Education and Skills for what reason eligibility for student loans is restricted to those under the age of 55. [17628]

Margaret Hodge

[holding answer 21 October 2002]In England and Wales student loans for maintenance are not available to over 54 year olds only because the loan is written off at retirement age, which may leave many older graduates with inadequate time for repayment.

There is no age limit on eligibility for grants for tuition fees, supplementary grants for living costs or hardship funds, which do not have to be repaid.

Mr. MacDougall

To ask the Secretary of State for Education and Skills for what reason people aged 50 to 54 wishing to access loans have to state their intention to seek employment in writing. [76129]

Margaret Hodge

[holding answer 21 October 2002]Student loans are intended to be repaid. For this reason, in England and Wales, they are only available to 50 to 54 year-olds who intend to enter employment upon graduating, and thus, will have the means to repay.

There is no age limit on eligibility for grants for tuition fees, supplementary grants for living costs or hardship funds which do not have to be repaid.

Mr. Peter Ainsworth

To ask the Secretary of State for Education and Skills what plans he has to raise the repayment threshold for student loans. [77748]

Mr. Flook

To ask the Secretary of State for Education and Skills whether the Government will raise the repayment threshold for student loans [77781]

Margaret Hodge

There are two types of student loan. Borrowers who started their courses before the 1998–99 academic year are liable to repay fixed-term (mortgage-style) loans. Income contingent loans apply to the vast majority of borrowers who entered higher education from the 1998–99 academic year.

Under the mortgage-style loans scheme, a student can defer their loan repayments for a year at a time if their income is not more than 85 per cent. of national average earnings. This deferment threshold is recalculated annually in line with figures published by National Statistics, and is currently £21,022 for the year starting 1 September 2002. Any change to the 85 per cent. threshold would require primary legislation and we have no plans to make such a change

The threshold for repaying income contingent loans is an annual income of £10,000. Borrowers over this threshold are liable to repay 9 per cent. Of their income over £10,000. The repayment scheme came into effect in April 2000 and the level of the threshold is being kept under review.

Mr. Caton

To ask the Secretary of State for Education and Skills what plans the Government have to raise the repayment threshold of student loans. [77910]

Margaret Hodge

We have announced our intention to publish a strategy document setting out our vision for the development and reform of higher education, including the outcome of the review of student support. The document will be out shortly; it would not be right to pre-empt it here by saying what is or is not planned.

Mr. Laurence Robertson

To ask the Secretary of State for Education and Skills what plans she has to increase the earnings threshold at which student loans become repayable; and if she will make a statement. [77056]

Margaret Hodge

There are two types of student loan. Borrowers who started their courses before the 1998–99 Academic Year are liable to repay fixed-term (mortgage-style) loans. Income contingent loans apply to the vast majority of borrowers who entered higher education from the 1998–99 Academic Year.

Under the mortgage-style loans scheme, a student can defer their loan repayments for a year at a time if their income is not more than 85 per cent. of national average earnings. This deferment threshold is recalculated annually in line with figures published by National Statistics, and is currently 21,022 for the year starting 1 September 2002. We have no plans to change the 85 per cent. threshold.

The threshold for repaying income contingent loans is an annual income of 10,000. Borrowers over this threshold are liable to repay 9 per cent. of their income over 10,000. The repayment scheme came into effect in April 2000 and the level of the threshold is being kept under review.