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Student Loans Company: Finance

Volume 475: debated on Thursday 1 May 2008

To ask the Secretary of State for Innovation, Universities and Skills what estimate he has made of the level of debt which will be owed to the Student Loans Company in each of the next five years. (200282)

The estimated amount of outstanding publicly owned student loans at the end of each of the next five financial years is:

End of financial year

Total outstanding (£ billion) (rounded to nearest £ billion)

2008-09

27

2009-10

31

2010-11

36

2011-12

41

2012-13

46

Note:

The amounts include those taken out by English domiciled students studying in the UK and EU students studying in England, as well as Mortgage Style (MS) loans taken out by English and Welsh domiciled students studying in the UK.

There will be steady growth in the total value of outstanding loans over the next five years, with estimated repayment levels being lower than the estimated value of new loans. Several years further into the future, the income contingent repayment (ICR) loans system will be fully mature and there will be consistent numbers of borrowers studying, repaying, completing repayment and having loans cancelled after 25 years. At that stage, the total value of loans in real terms is expected to peak.

These amounts include all ICR loans and do not take account of potential future sales of loans to the private sector. They include Mortgage Style loans, except those that were sold to the private sector in 1998 and 1999.