Students: Loans

Department for Education written question – answered on 15th September 2017.

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Photo of Bambos Charalambous Bambos Charalambous Labour, Enfield, Southgate

To ask the Secretary of State for Education, what assessment she has made of the potential effect on the public purse of the write-off student loans after the 30 year term expires.

Photo of Jo Johnson Jo Johnson Minister of State (Department for Education) (Universities and Science) (Joint with the Department for Business, Energy and Industrial Strategy), Minister of State (Department for Business, Energy and Industrial Strategy) (Universities and Science) (Joint with the Department for Education)

The Government’s reforms to the undergraduate student finance system have ensured that it is financially sustainable for the taxpayer in the long-term, while enabling those with the talent to benefit from a higher education to be able to afford to do so.

The Resource Accounting and Budgeting (RAB) charge estimates the value of loans that will not be repaid during their 30-year term, expressed as a percentage of the loan outlay made in the relevant year. For full time tuition fee and maintenance loans and part time fee loans issued in 2016/17, we estimate the RAB charge to be around 30%.

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