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Student Loans

Volume 409: debated on Friday 18 July 2003

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To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July, Official Report, column 439–40W, what the value is of student loans where repayments have been made early in each year since the scheme began; and what the amount is as a percentage of the total amount repaid. [126081]

[holding answer 16 July 2003]: The value of student loans in the UK where repayments have been made earlier than required since the beginning of the scheme, and the percentage this represents of the total amount repaid are shown in the table:

Financial yearRepaid earlier than required1, 2,(£ million)Repaid earlier than required as a percentage of all repayments1, 2, 4
1990–9155
1991–920.975
1992–932.847
1993–945.035
1994–956.524
1995–9610.721
1996–9718.121
1997–98328.922
1998–99325.719
1999–20003, 633.426
2000–012, 3, 6, 743.224
2001–022, 3, 6, 763.924
1 The table covers both mortgage style and income contingent loans. Early repayments of Income Contingent loans are made directly to the Student Loans Company whether or not the borrower is making repayments through the taxation system.
2 There is a discontinuity in the time series due to a change in the Student Loans Company's business process in December 2000 early repayments include those which do not necessarily settle the account in full.
3 Two portfolios ofstudent loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the publicly owned debt only.

4 Repayments of income contingent loans through the tax system are reported at the time when Student Loans Company is notified of the repayments by Inland Revenue, which may be one of more years after the tax year they relate to.

5 Not applicable

6 Discontinuity in time series

7 Provisional.

To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July, Official Report, column 439–40W, what the total value is of student loans where repayment has been deferred in each year since the scheme began. [126082]

[holding answer 16 July 2003]: The table shows the cumulative balance at the start of each financial year of mortgage style student loans in the UK and in public ownership where repayment has been deferred. There is no concept of deferment from those with income contingent loans who repay through the tax system—repayments are not collected from those earning below the threshold, i.e. £10,000 in financial year 2001–02.

Financial yearBalance in Deferment (£ million)
1990–913
1991–924
1992–934
1993–944
1994–9540
1995–96118
1996–97247
1997–98468
1997–98468
1998–99447
1999–2000466
2000–015672
2001–025909
1 The table shows the cumulative balance of loans in deferment at the start of each financial year; the balance is the amount of dererment and the sum not yet due for repayment but excluding any amount repaid. For loans deferred with arrears, the value of arrears has been excluded.
2 Two portfolios of student loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the public debt only.
3 not applicable.
4not available.
5Provisional.

Source:

Student Loans Company

To ask the Secretary of State for Education and Skills pursuant to his answer of 3 July 2003, Official Report, column 439–40W, what the total value is of loans where inability to repay has been cancelled in each year since the scheme began. [126083]

[holding answer 16 July 2003]: The sable shows the total value of student loans in the UK and in public ownership which have been written off or cancelled in each financial year.

Amount written off/cancelled1, 2, 3
Financial year(£ million)
1990–914—
1991–925—
1992–930.1
1993–940.2
1994–950.3
Amount written off/cancelled1, 2, 3
Financial year(£ million)
1995–960.5
1996–970.9
1997–981.0
1998–99 of which:0.9
Income contingent loans6
1999–20007 of which:1.2
Income contingent loans5
2000–018 of which:1.1
Income contingent loans0.2
2001–028 of which:1.4
Income contingent loans0.4
1 The table shows the value of loans cancelled or written off during each financial year.
2 Two portfolios of student loans to the value of just over £2 billion have been sold to the private sector in March 1998 and March 1999. The figures in the table relate to the public debt only.
3 A cancelled loan is one where the borrower no longer has any liability to repay as set out by legislation. A borrower's liability to repay shall be cancelled: on death of the borrower; after 25 years or when the borrower reaches the age of 50 (60 if the borrower was aged over 40 when he/she last borrowed), whichever is the earlier, provided the borrower is not in default; and if the borrower is in receipt of a disability related benefit and permanently unfit for work. A written off loan is one where the borrower remainsliable to repay but recovery is deemed unlikely by the loan administrator or not possible by legal judgment.
4 Not applicable.
5 Nil/negligible.
6 Not available.
7 Amounts written off in1999–2000 include some transactions
8 Provisional.