Student Loans (Hansard, 19 November 2003)

§ Mr. Damian Green
To ask the Secretary of State for Education and Skills what assessment he has made of the effect on costs to his Department of raising the repayment thresholds on student loans to £15,000 a year. [137574]

§ Alan Johnson
We plan to publish a Regulatory Impact Assessment before the end of the year which will set out the impact of this change alongside the financial implications of the other policies announced in the Higher Education White Paper.

§ Mr. Cousins
To ask the Secretary of State for Education and Skills what estimate he has made of(a) the total outstanding size of student loan debt with the Government and its agencies in each year since 2001 and (b) the total Government payment for full or partial remission of tuition fees since 2001; and if he will list the planning assumptions for the size of each for the next three years. [139022]

§ Alan Johnson
On(a) the outstanding size of student loan debt for England and Wales at the end of financial year 2001–02, i.e. at 31 March 2002 was £7,203,199,000. A figure for student loan debt as at 31 March 2003 will be available when the DfES Resource Accounts for 2002–03 are published which is planned for December 2003. Planning assumptions are based around an increase of approximately £2 billion per annum in student loan debt for England and Wales. The Department does not hold figures for Scotland and Northern Ireland.
On (b) the cost to the Government of the public contribution to existing tuition fee remission arrangements for English and Welsh domiciled students studying in the United Kingdom is £382 million for 2001/02 academic year. Projections of fee income to English HEIs from home and EU domiciled students will be available at the end of November.
1012W

§ Paul Farrelly
To ask the Secretary of State for Education and Skills what recent research his Department has undertaken to establish whether students differentiate between debt and income-contingent loans. [139636]

§ Alan Johnson
The Department has not undertaken research to establish whether students differentiate between debt and income-contingent loans.

§ Paul Farrelly
To ask the Secretary of State for Education and Skills what the average level of debt for a student leaving university was in each academic year since 1993–94. [139642]

§ Alan Johnson
The table shows the average student loan debt at the point at which they entered repayment status for borrowers who became liable to repay their loans in financial years 1999–2000 to 2002–03. Data for earlier years are not available.

£

Average student loan debt on entering repayment status¹

Financial year entered repayment status² Mortgage style loans³ Income contingent loans⁴ Part-time loans⁵

1999–2000 3,530 ⁶— ⁶—

2000–01 4,090 2,300 ⁶—

2001–02 4,490 3,410 450

2002–03 5,150 5,980 520

¹ Data rounded to nearest 10. Includes interest accrued up to the point of entering repayment status. Excludes any early voluntary repayments which may have been made before borrowers enter repayment status. Debt of borrowers with more than one loan type has been split between types.

² Borrowers enter repayment status in the April following their graduation or otherwise leaving their course. Borrowers may have accounts in more than one cohort year of entering repayment.

³ Loans made to students who entered higher education up to 1997/98 or who entered in 1998/99 under existing arrangements. Includes loans repayable to the private sector following the sale of two tranches of student loans.

⁴ Loans, repayable on an income contingent basis, available to students who entered higher education from academic year 1998/99. These loans were subject to a repayment holiday until April 2000. Includes hardship loans.

⁵ Fixed-rate loans made to eligible part-time students, introduced in September 2000.

⁶ Not applicable.

Source:
Student Loans Company.
The first cohort of students on a three-year degree course who entered higher education under the new student support arrangements became liable for repayment in April 2002. That, and earlier, cohorts includes a disproportionate number of students on shorter courses as well as those who have left higher education before completing their courses. Therefore the average level of debt will not be representative of the average debt experienced by those who complete their courses.
Borrowers are liable to repay their loans from the April following graduation or otherwise leaving their course. Most borrowers who started their course from the 1998/99 academic year will repay income contingent loans. Loans for those who started their course before 1998/99 are repayable on a mortgage style basis.
1013W
The Department does not have annual data for HE students' total debt on graduation (including bank loans, overdrafts, credit cards, and informal debts to family and friends). The Student Income and Expenditure Survey (SIES), which collects this information is undertaken every three to four years. Findings from the last survey in 1998/99 showed that the average total anticipated debt of all full-time students graduating in 1998/99 was £3,462. The Department has conducted a SIES for the 2002/3 academic year which will be published shortly.

£
	Average student loan debt on entering repayment status¹
Financial year entered repayment status²	Mortgage style loans³	Income contingent loans⁴	Part-time loans⁵
1999–2000	3,530	⁶—	⁶—
2000–01	4,090	2,300	⁶—
2001–02	4,490	3,410	450
2002–03	5,150	5,980	520
¹ Data rounded to nearest 10. Includes interest accrued up to the point of entering repayment status. Excludes any early voluntary repayments which may have been made before borrowers enter repayment status. Debt of borrowers with more than one loan type has been split between types.
² Borrowers enter repayment status in the April following their graduation or otherwise leaving their course. Borrowers may have accounts in more than one cohort year of entering repayment.
³ Loans made to students who entered higher education up to 1997/98 or who entered in 1998/99 under existing arrangements. Includes loans repayable to the private sector following the sale of two tranches of student loans.
⁴ Loans, repayable on an income contingent basis, available to students who entered higher education from academic year 1998/99. These loans were subject to a repayment holiday until April 2000. Includes hardship loans.
⁵ Fixed-rate loans made to eligible part-time students, introduced in September 2000.
⁶ Not applicable.