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Higher Education: Student Loans

Answer

The average amount of debt owed by borrowers who take out income contingent repayment (ICR) loans is published by the Student Loans Company (SLC) in the Official Statistics release Income Contingent Repayments by Repayment Cohort and Tax Year. The most recent release was published in June 2011 and refers to financial year 2010-11 http://www.slc.co.uk/media/77960/SLCOSP022011.pdf. The publication contains a breakdown of the amount of debt outstanding of all ICR borrowers by repayment cohort (year the borrower became liable to repay their loan) in table 3 (iii). SLC do not hold information on whether or not borrowers completed their course. The figures in the table includes borrowers who did not complete their course, borrowers whose courses were longer or shorter than three years and borrowers who received a loan for more than one course. From academic years 1998-99 to 2010-11, £37.7 billion has been borrowed in income contingent repayment loans, for maintenance and tuition fees. This figure includes English domiciled students, and EU domiciled students studying in England from 2006-07 onwards, when they became eligible for tuition fee loans. £3.3 billion has been added in interest to student debt from financial years 1998-99 to 2010-11. It is not appropriate to express this as an average, given the number of borrowers has changed over that period. Under the income-contingent repayment (ICR) student loans system, any outstanding loan balances will be cancelled in the following circumstances: if a borrower dies; or if a borrower receives a disability benefit and because of the disability is permanently unfit for work. For those entering higher education (HE): before 1 September 2006: when the borrower reaches the age of 65; on or after 1 September 2006 but before 1 September 2012: 25 years after their statutory repayment due date (SRDD); and on or after 1 September 2012: 30 years after their SRDD. The Education (Student Loans) Regulations state that a borrower may repay all or any part of a student loan at any time by making direct payments to the Student Loans Company.

Secondary information

Type

Written question

Reference

16427; 736 c345-6WA

Session

2010-12

Subjects

Interest charges Loans Repayments Students

Link

View this Written question on www.publications.parliament.uk