§ Mr. HoyleTo ask the Secretary of State for Education and Skills what measures he is taking to reduce the burden of debt on graduates. [97413]
§ Margaret HodgeThe Government will continue to meet the costs of fees up to £1,100 for those students whose family income falls below £20,000, and a proportion of that for those whose family income is between £20,000 and £30,000. In addition, from 2004, we are introducing new grants of £1,000 a year, which we intend to go in full to around 30 per cent. of students.
From 2006, under the new Graduate Contribution Scheme, no student or parent will have to pay any fees up-front: students will make repayments after they graduate, and only once they are earning above a certain level. Moreover, from 2005 we are raising the repayment threshold from £10,000 to £15,000. That means that the burden of repayments will be eased, by £450 a year. Graduates will have the option of making extra payments, if they wish to pay off their debt more quickly.