Professional and Career Development Loans

Viscount Hanworth Excerpts

Monday 12th October 2015 Lords Chamber

Asked by

[Viscount Hanworth]

To ask Her Majesty’s Government how many professional and career development loans have been offered by the appointed banks to this year’s prospective postgraduate students, relative to the number of applications.

[Baroness Evans of Bowes Park (Con)]

My Lords, in the 2015-16 financial year, to date around 5,000 loan applications have been accepted by the banks. That is consistent with previous years. Only when a student commences study does the loan become live. At that point, the system identifies those undertaking postgraduate courses. As most do not begin until late October, it is not yet clear what proportion of applicants are for postgraduate courses.

[Viscount Hanworth (Lab)]

I thank the Minister for that Answer. The lack of information on this account is disturbing, since it means that the Government are paying too little attention to a matter of national importance. The truth, as I perceive it, is that inadequate financial support has been given to our native postgraduate students. It appears that the banks, on which the Government are depending to provide loans to students, have not been sufficiently forthcoming. Such loans are demanding the exorbitant rate of interest of 10%. That must surely have deterred many postgraduate students from contracting such loans. I seek an assurance from the Minister that the Government are aware of these deficiencies and that they are taking steps to amend the situation.

[Baroness Evans of Bowes Park]

Over 250,000 people have been lent over £1.1 billion since 1988 under these loans. But the noble Viscount will be aware that the Government have just closed their consultation on a new postgraduate loan, which specifically targets postgraduates. This would be the first time that such a loan would be introduced. We are due to publish the response and final scope of that policy in the autumn, but the NUS vice-president has welcomed it, saying that it is step in the right direction, and the chief executive of Universities UK has said that it is good news so we are certainly doing what we can in this area. This new loan will be extremely welcome.