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Students: Finance

Volume 486: debated on Thursday 15 January 2009

To ask the Secretary of State for Innovation, Universities and Skills how much the average maintenance grant payment to eligible undergraduate students was in (a) 2005-06, (b) 2006-07 and (c) 2007-08. (247130)

The information requested is as follows:

Average Higher Education Grant and Maintenance Grant (£)1

England

2005/06

2006/07

2007/08

Higher Education Grant2

870

890

890

Maintenance Grant3

n/a

2,010

2,090

1 Figures rounded to nearest £10.

2 Average amount for those awarded a Higher Education Grant.

3 Average amount for those awarded a Maintenance Grant.

The Maintenance Grant for living costs was introduced in 2006/07, replacing the Higher Education Grant for new entrants.

To ask the Secretary of State for Innovation, Universities and Skills what procedures are in place for informing (a) students and (b) recent graduates about the change to student loan interest rates implemented on 5 December 2008. (247131)

The Student Loans Company (SLC) published details on the change to student loan interest rates implemented on 5 December 2008 on their website and in national newspapers. Borrowers receive details of new interest rates in their statement each year from the SLC. Information on the interest rate change was also published on the Directgov website.

Following the latest reduction in the Bank of England base rate by the Monetary Policy Committee on 8 January 2009, all the specified banks1 have now reduced their base rates to 1.5 per cent. The SLC has therefore now reduced the interest rate for income contingent loans from 3 per cent. to 2.5 per cent. with effect from 9 January 2009 until further notice. The SLC has accordingly published this information on their website and in national newspapers.

The interest rate for loans taken out before 1998 (known as “mortgage style loans”) is not affected as these loans are governed by different legislation.

1Bank of England; Bank of Scotland; Barclays Bank PLC; Clydesdale Bank PLC; Co-operative Bank PLC; Coutts & Co; HSBC Bank PLC; Lloyds TSB Bank PLC; Natwest Bank PLC; the Royal Bank of Scotland PLC.