Skip to main content

Students: Fees and Charges

Volume 463: debated on Monday 1 October 2007

To ask the Secretary of State for Innovation, Universities and Skills what percentage of higher education institutions are charging annual tuition fees in excess of £1,125; and how much extra income his Department estimates these institutions will receive from charging these fees compared with the 2005/06 academic year. (155090)

[holding answer 10 September 2007]: In 2006/07, all Higher Education Institutions in England who were running undergraduate courses had an access agreement to charge Variable Tuition Fees, and were charging over the £1,200 fixed fee amount for that year.

Data are not yet available on the income to institutions from Tuition Fees in the 2006/07 academic year.

However, the Department’s estimates for the expected receipts from university tuition fees were given in the November 2005 statement to the Commons. These were based on the income from UK and EU full-time undergraduate students studying at English Higher Education institutions; where we estimated that once all cohorts of students were paying variable fees, the total fee income would equate to £2,250 million in 2006-7 prices which compares to an estimated income of £900 million from standard fees of £1,200. Therefore, our estimate for the additional fee income from Variable Tuition Fees is £1,350 million.

To ask the Secretary of State for Innovation, Universities and Skills what estimate his Department has made of the cost of (a) providing fee deferral to students at HE institutions and (b) writing off any student debt still outstanding after 25 years. (155093)

Provision for the cost of fee loans for English domiciled HE students in FY07-08 is £349 million in resource accounting and budgeting (RAB) terms1. The current RAB charge for fee loans is 33 per cent. This shows the future cost to Government of subsidising and writing-off student loans issued in any given year.

The fee loan ensures that students are not forced to pay tuition fees before university and they only repay once in work and earning more than £15,000.

1 The RAB charge is an estimate of the percentage of the face value of loans issued in that year which reflects the resource cost over the expected life of the loan to the Government of making the loans.