Written question asked by Andrew Welsh (Scottish National Party) on Tuesday, 7 April 1998, in the House of Commons. It was due for an answer on Tuesday, 21 April 1998. It was answered by Kim Howells (Labour) on Tuesday, 21 April 1998 on behalf of the Department for Education and Employment.

Dept for Education and Employment

Question: To ask the Secretary of State for Education and Employment, what plans he has to (a) give part-time students access to loans on the same basis as full-time students and (b) change the accounting rules so that student loans are counted as investment; what discussions he has held on this subject; with which bodies.

Answer: Mr. Welsh: To ask the Secretary of State for Education and Employment what plans he has to (a) give part-time students access to loans on the same basis as full-time students and (b) change the accounting rules so that student loans are counted as investment; what discussions he has held on this subject; with which bodies; and if he will make a statement. [38820] Dr. Howells: We agree with the Dearing Committee's recommendation that extending loans to part-time students in higher education should not be a priority. While we have taken alternative steps to protect part-time students who experience financial hardship, we have no plans to extend loans to them at this stage. The provisions of the Teaching and Higher Education Bill would, however, allow loans to be extended to part-timers at some time in the future and we will keep the position under review. The Government's proposal to move to a system of full Resource Accounting and Budgeting in 2001-02 will result in student loans being treated as a balance sheet asset in the Department's accounts. Discussions on this issue are taking place as part of wider preparations for the introduction of Resource Accounting and Budgeting across government, which is the responsibility of my right hon. Friend the Chancellor of the Exchequer.

Secondary information