Written question asked by Lord Willis of Knaresborough (Liberal Democrat) on Thursday, 5 April 2001, in the House of Commons. It was due for an answer on Monday, 23 April 2001. It was answered by Malcolm Wicks (Labour) on Monday, 23 April 2001 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, pursuant to his Answer to the honourable Member for Truro and St. Austell of 9th February 2001, 362 c746W, if he will estimate the nominal rate of interest required to hold the net present value of student loans at £590m if the threshold of student loans repayment were increased to £15,000. - Inc figures. (Holding answer 10 April 2001).

Answer: Mr. Willis: To ask the Secretary of State for Education and Employment, pursuant to his answer to the hon. Member for Truro and St. Austell (Mr. Taylor) of 9 February 2001, Official Report, column 764W, if he will estimate the nominal rate of interest required to hold the net present value of student loans at £590 million if the threshold of student loans repayment were increased to £15,000. [157872] Mr. Wicks: [holding answer 10 April 2001]: The net present value of the estimated £982 million income contingent loans issued in 1999-2000 to students domiciled in England and Wales is estimated to be £590 million. The nominal rate of interest required to maintain this net present value with a threshold for repayment of £15,000 per year is estimated to be around 4 1/2 per cent.

Secondary information

Type: Written question
Reference: 157872; 367 c118W
Session: 2000-01
Subjects: Debts Finance Higher education Interest rates Loans Repayments Students
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk