Question

To ask the Secretary of State for Business, Innovation and Skills, what steps he plans to take to ensure that students from lower socio-economic groups are not disincentivised from applying to university by fear of increased debt when student maintenance grants are replaced by new maintenance loan support.

We are increasing the overall amount of cash in hand we provide students to support the cost of living to the highest ever amount. For new full-time students starting their courses on or after 1 August 2016, maintenance grants will be replaced by maintenance loans. Eligible students on low incomes will qualify for a maximum maintenance loan that is 10.3% higher than the maximum maintenance grant and loan support available in 2015/16. Higher education remains free at the point of entry, with students able to fund their studies through loans which they only repay when they are earning above £21,000.

All institutions wishing to charge fees above the basic level must agree an Access Agreement with the independent Director of Fair Access. In July, the Director of Fair Access announced that he has approved 183 Access Agreements for 2016/17. Institutions expect to spend £745.5m on widening access in 2016/17, rising to £750.8m in 2019/20.