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Written question asked by Lord Willis of Knaresborough (Liberal Democrat), in the House of Lords. It was answered by Lord Henley (Conservative) on Monday, 3 October 2011.

Higher Education: Student Loans

Question
To ask Her Majesty’s Government what will be the maximum amount a student from the least affluent background studying for a three-year course at a university charging the maximum permitted level can borrow under the 2012 student loans arrangements; and what will be the estimated level of debt to be repaid if, five years after graduating, their salary is less than £21,000 per year and the retail price index remains at five per cent.
Answer

Full-time new entrants for courses beginning in 2012-13 will be able to apply for a non-means-tested tuition loan of up to £9,000 for each year of their course, making a total of £27,000 for a three-year course at a university charging the maximum level of tuition fees. Students can also apply for a maintenance loan for each year of their course. Students with the lowest household incomes (up to £25,000) will be entitled to the maximum non-repayable maintenance grant of £3,250. Their maintenance loan entitlement will be reduced as a result, by comparison with the entitlement of students from higher-income households. Assuming that a student is entitled to the maximum maintenance grant, the maximum amount that the student can borrow is set out below:

Living at the parental home Living away from parental home and studying in London Living away from parental home and studying elsewhere
Total tuition fee loan £27,000 £27,000 £27,000
Maintenance loan year 1 £2,750 £6,050 £3,875
Maintenance loan year 2 £2,750 £6,050 £3,875
Maintenance loan final year £2,395 £5,365 £3,490
Maximum loan available for a 3-year course £34,895 £44,465 £38,240

The above figures assume that the institution is charging the maximum tuition level of £9,000 a year and the student has applied for the maximum amount of maintenance loan available to them. They do not take into account any support available from HEIs for students at the lowest incomes, eg tuition charge waivers or bursaries. Based on these figures, the balance five years after the statutory repayment due date (SRDD), assuming that inflation remains at 5 per cent and no repayments are made, would be: Students living at the parental home: £52,000. Students living away from the parental home and studying in London: £66,500. Students living away from the parental home and studying elsewhere: £57,000.

Secondary information

Type
Written question
Reference
11728; 730 c117-8WA
Session
2010-12
Notes
Answer received between Thursday 15 September and Monday 26 September 2011.
Subjects
Loans Universities Repayments Students
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk