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Loans: Students

Volume 459: debated on Thursday 3 May 2007

To ask the Chancellor of the Exchequer (1) how much the Government received for the sale of student loans in (a) 1998 and (b) 1999; and what the face value was of each of these loans at the time of sale; (132261)

(2) how much interest was paid to banks by the Government in support of the student loans scheme in each year since its inception.

I have been asked to reply.

In 1998 the Government received £1 billion for the sale of student loans with a face value of £1.02 billion. In 1999 the Government received £1 billion for the sale of student loans with a face value of £1.03 billion. These are UK figures.

The following table shows the amount of interest subsidy paid to the debt sale owners in each year since 1998.

Financial year

Subsidy (£000)

1998-99

54,000

1999-2000

90,890

2000-01

110,476

2001-02

88,986

2002-03

88,963

2003-04

42,751

2004-05

48,091

2005-06

36,895

Note:

Figures are for England and Wales