Graduates: Debts

Innovation, Universities and Skills written question – answered on 15th October 2008.

Alert me about debates like this

Photo of Greg Mulholland Greg Mulholland Shadow Minister (Health)

To ask the Secretary of State for Innovation, Universities and Skills

(1) how many students who left (a) Leeds University and (b) Leeds Metropolitan University since 2005 are not earning the £15,000 threshold to begin paying back their student loans;

(2) what the average wage was of graduates of (a) Leeds University and (b) Leeds Metropolitan University of (i) 2005-06, (ii) 2006-07 and (iii) 2007-08.

Photo of David Lammy David Lammy Minister of State (Department for Innovation, Universities and Skills) (Higher Education & Intellectual Property)

The Higher Education Statistics Agency (HESA) collects information on graduates' salaries through the Destination of Leavers from Higher Education (DLHE) survey. The DLHE Survey captures the first destinations of graduates, six months after leaving university. The most recent information available is for those who graduated in 2006/07 who were surveyed in early 2008.

In 2006/07, 51 per cent. of UK domiciled leavers who obtained first degree qualifications and entered full-time paid employment in the UK disclosed their salary. 36 per cent. from the University of Leeds and 66 per cent. from Leeds Metropolitan University disclosed their salary. HESA therefore advises caution in analysis of leavers by salary. Respondents are asked to report their salary to the nearest £1,000.

The latest available information on salaries of graduates, six months after graduation, is shown in the following tables. Comparable figures for the 2007/08 academic year will be available in July 2009.

Table 1: Number of UK domiciled leavers who obtained first degree qualifications by destination six months after graduation academic years 2005/06 and 2006/07
Higher education institution Destination 2005/06 2006/07
University of Leeds(1) Total with known salary(2) 765 870
O f which:
Number earning under £15,000 200 195
Leeds Metropolitan University(3) Total with known salary(2) 955 1070
O f which:
Number earning under £15,000 245 265
All UK HEIs Total with known salary(2) 53,640 54,140
O f which:
Number earning under £15,000 13,315 11,095
(1) In 2006/07 36 per cent. of graduates from the University of Leeds, who responded to the DLHE survey, disclosed their salary.

(2) Who are in full-time paid employment in the UK.

(3) In 2006/07 66 per cent. of graduates from Leeds Metropolitan University, who responded to the DLHE survey, disclosed their salary.

Note:

Figures have been rounded to the nearest five.

Source:

Destinations of Leavers from Higher Education (DLHE) survey.

Table 2: Median salaries of UK domiciled leavers who obtained first degree qualifications and entered full-time paid employment in the UK—academic years 2005/06 and 2006/07
£
Higher education institution 2005/06 2006/07
University of Leeds(1) 18,000 18,000
Leeds Metropolitan University(2) 17,000 18,000
All UK HEIs 18,000 19,000
(1) In 2006/07 36 per cent. of graduates from the University of Leeds, who responded to the DLHE survey, disclosed their salary.

(2) In 2006/07 66 per cent. of graduates from Leeds Metropolitan University, who responded to the DLHE survey, disclosed their salary.

Source:

Destinations of Leavers from Higher Education (DLHE) survey.

Around 80 per cent. of eligible students choose to take out maintenance loans. Therefore not all leavers have student loans.

Repayments of income-contingent student loans are linked to a borrower's income and not the amount owed. Repayment is at 9 per cent. of annual income over a threshold of £15,000, collected through the tax system, usually by employers each pay date for borrowers on PAYE, in the same way as income tax and national insurance contributions. This allows a greater degree of career flexibility—for example, if someone takes a career break, becomes unemployed or takes lower paid employment. In addition borrowers can voluntarily make repayments direct to the Student Loans Company, even if their income is below the repayment threshold.

Recent graduates will typically have lower salaries when entering the labour market than they will receive later in their careers. For students graduating in 2002/03 the first degree median salaries increased from £16,000 at the Early Survey (six months after graduation) to £22,000 at the Longitudinal Survey (three and a half years after graduation), an increase of 37.5 per cent. This compares with an increase in average earnings across the whole economy of around 11.5 per cent. over the same period.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.