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Higher Education: Loans, Grants and Fees

Volume 705: debated on Tuesday 25 November 2008

My right honourable friend the Minister of State for Higher Education and Intellectual Property (David Lammy) has made the following Written Ministerial Statement.

On 29 October 2008, my right honourable friend the Secretary of State for Innovation, Universities and Skills announced that the Government are making extra money available, totalling £100 million in steady state, to meet the higher than expected demand for student support in 2009-10 and beyond. This will enable the Government to maintain their intention that two-thirds of eligible students should receive either the full grant of £2,906 or a partial grant in 2009-10. We also expect that our commitment for one-third of eligible students to receive a full grant will be exceeded—under the new package, we anticipate that 40 per cent of students may be eligible for a full grant.

This means that students with household incomes ranging from £18,360 to £50,020 will be eligible for higher levels of grant than in 2007-08, while those with incomes ranging from £18,360 to £57,708 will be eligible for a more generous package of grant and loan support than in 2007-08. Amendment regulations to the Education (Student Support) (No. 2) Regulations 2008 are being laid today.

My predecessor as Minister of State for Higher Education, Bill Rammell, placed a memorandum in the Library on 13 May 2008 giving details of the increased loan, grant and fee rates for the 2009-10 academic year, in line with forecast price increases. The detailed tables in that memorandum gave income thresholds for the partial maintenance grant and for the non-means-tested element of the student loan, which have now been revised. I am therefore placing an updated memorandum in the Library which makes clear the levels of support available to new entrants in 2009-10, as well as giving tables showing support for continuing students.