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Dept for Education and Skills

Answer

Mr. Edward Davey: To ask the Secretary of State for Education and Skills what the Government's actual expenditure on the interest subsidy on student loans was in the academic years (a) 2001-02, (b) 2002-03, (c) 2003-04 and (d) 2004-05. [204931] Dr. Howells: The Secretary of State for Education and Skills only has responsibility for student loans paid to higher education students domiciled in England and Wales and this answer provides data relating to those students. The following table provides the expected future interest subsidy over the loan's life for each year's loan issues. This represents the anticipated whole resource cost of the loans advanced during the year in question. The table also gives the actual amount by which the Government subsidised the interest charged on student loans annually. This represents the resource consumed in the financial year in question of subsidising the whole outstanding loan book. Calculations are based on financial rather than academic years: £ million _________________________________________________________________________________________________. Financial year Future interest subsidy charge Annual interest subsidy 2001-02 773 376 2002-03 959 544 2003-04 600 427 _________________________________________________________________________________________________. Source: DfES Resource Accounts The Government's cost of capital rate changed from 6 per cent. to 3.5 per cent. on 1 April 2003, therefore, the earlier years are not comparable with later years. Actual figures for 2004-05 are not yet available.

Secondary information

Type

Written question

Reference

204931; 428 c1712W;428 c1710W

Session

2004-05

Subjects

Interest charges Loans Subsidies Students

Contains statistics

Yes

Link

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