---

Dept for Education and Skills

Answer

Mr. Andrew Turner: To ask the Secretary of State for Education and Skills what the average annual repayment of debt (a) to the Student Loans Company and (b) to others was of a higher education student graduating in each year since 1997. [105944] Margaret Hodge: Borrowers become liable to repay their loans from the April after they finish or leave their course, depending on their earnings. Students who started their course before academic year 1998/99 repay their loans on a mortgage style basis. The table shows the average repayment of mortgage style student loans in financial years 1999-2000 to 2001-02 (the latest year available) for borrowers who became liable to repay their loans in the financial years 1998-99 to 2001-02 and who are making repayments; the table excludes any voluntary repayments made by borrowers before becoming liable to repay their loans. Students who started their course from the 1998/99 academic year will repay income contingent loans. Repayments of income contingent loans, apart from voluntary repayments and repayments from overseas borrowers, are made through the tax system. The scheme started in April 2000 and details of repayments are notified to the Student Loans Company by the Inland Revenue from the end of the relevant financial year. Therefore complete data on the average repayment of income contingent loans are not yet available. £ _________________________________________________________________________________________________. Financial year entered repayment Mortgage style student loans1,2-Average repayments made during financial year3,4,5 status6,7 1999-00 2000-01 2001-02 1998-99 530 580 610 1999-2000 490 600 650 2000-01 8-- 570 680 2001-02 8-- 8-- 640 _________________________________________________________________________________________________. 1 Loans available to borrowers who entered higher education before academic year 1998/99, and those who entered in 1998/99 to whom the existing arrangements applied. These loans are repayable on a fixed term basis, over 5 or 7 years depending on length of course, if the borrower's income exceeds the repayment threshold. 2 Includes repayments on debts sold in the two portfolios of student loans which are administered by the Student Loans Company. 3 Data are not available on repayments by cohort made in financial year 1998-99. 4 Figures have been rounded to the nearest 10. 5 Excludes those who have made no repayment because of deferment. 6 The table excludes any repayments made by borrowers before entering repayment status. 7 Borrowers are liable to repay their loans from the April following their graduation or otherwise leaving their course. 8 Not applicable. Source: Student Loans Company Data on repayments of other debt for which there is no private subsidy, such as overdrafts, credit cards and informal debt to family and friends are not available centrally.

Secondary information

Type

Written question

Reference

105944; 404 c637-8W;404 c633-4W

Session

2002-03

Subjects

Debts Finance Higher education Loans Repayments Students Student Loans Company

Contains statistics

Yes

Link

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