Students: Loans

Innovation, Universities and Skills written question – answered on 16th March 2009.

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Photo of Shailesh Vara Shailesh Vara Shadow Deputy Leader of the House of Commons

To ask the Secretary of State for Innovation, Universities and Skills pursuant to the Answer of 2 March 2009, Hansard, columns 1337-38W, on students: loans,

(1) how many applications for career development loans have been (a) made and (b) granted in each of the last five years;

(2) how many career development loans have been awarded in each of the last five years; and how many have been awarded in 2008-09 to date.

Photo of Siôn Simon Siôn Simon Parliamentary Under-Secretary, Department for Innovation, Universities and Skills

Applications for Career Development Loans are made direct to the banks engaged in the programme; details of applications that are unsuccessful are not made available to the Learning and Skills Council (LSC) which administers the programme. The LSC collect information relating to loans that have been agreed by the banks.

The numbers of loans made in the last five full financial years and this year in Great Britain are set out in the table. The LSC believes that the lower numbers in 2007-08 and during this year reflect the adoption of tighter lending strategies by banks, but not a reduction in demand from learners.

"New Opportunities: Fair Chances for the Future" set out that Government would make funding available to increase the number of loans.

The banks have agreed to work with the Department and the LSC to agree the terms of an expanded programme which would include the higher maximum loan value of £10,000. I expect the increase in opportunities that Professional and Career Development Loans will offer in 2009-10 and 2010-11 to be taken up in response to increased, targeted marketing and as people continue to need to re-skill in response to the impact of the economic downturn.

Career development loans made in Great Britain
2003-04 17,331
2004-05 15,273
2005-06 17,840
2006-07 12,197
2007-08 9,145
2008-09 to 9 March 2009 7,580

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