Higher Education: Funding

Baroness Sharp of Guildford Excerpts

Wednesday 18th May 2011 Lords Chamber

[Lord Henley]

My Lords, as the noble Lord rightly said, we made the assumption in December of an average fee of roughly £7,500, with a 90 per cent take-up by students. However, it is up to higher education institutions to decide what application they should put in, and for the Office of Fair Access to look at that and make recommendations. As we made clear, there will be a number of bursaries and waivers, so we think that the average figure will come down well below the maximum of £9,000. I remind the noble Lord also that merely because a university puts in an application to charge £9,000 for one course, this does not mean that all courses will cost £9,000. I am afraid that the noble Lord will have to wait and see. As my right honourable friend Mr Willetts said in another place, we see no reason at the moment to amend the broad estimate that we put before the House last autumn.

[Baroness Sharp of Guildford]

What is the Government's estimate of how many students will not repay their debts after 30 years? In the light of that, are the Government continuing the policy of wanting to securitise the debt, and what sort of discount do they expect on such securitisation?

[Lord Henley]

My Lords, I have no estimates of the numbers of students who will not repay their loan. We hope very much that all those who benefit from higher education will, as we have made clear, have a higher earning potential throughout their working life. Therefore, it is likely that the vast majority will be able to repay their debt.