§ Chris GraylingTo ask the Secretary of State for Education and Skills (1) what proportion of student loans he estimates will not be paid off after 25 years following the introduction of top-up fees; [161137]
(2) what estimate of (a) the proportion of the overall student loan book, (b) the total value of loans and (c) the total number of individual loans that would remain outstanding after 25 years he used in calculating the level of cost to the Government of his proposal to write off all loans after that period. [161138]
§ Alan JohnsonEstimates of the cost of subsidising both maintenance and fee loans in 2006/07 were set out in the Regulatory Impact Assessment (RIA) published on 8 January alongside the Higher Education Bill.
We estimate that about 5 per cent. of borrowers, starting from 2006/07, may benefit from the proposal to write off loan balances after 25 years; the corresponding cost to the public purse is estimated at £30 million in steady state.
Copies of the Regulatory Impact Assessment were placed in the Library of the House; it is also available on the Department for Education and Skills website.