Question to the Department for Education:

To ask His Majesty's Government on what basis total university student debt is not counted against the public sector borrowing requirement.

The fiscal impact of student loans is measured by the Office for National Statistics (ONS). The statistics the ONS publishes are independent, following methodologies designed in consultation with the international statistical community and in line with the European System of Accounts.

The ONS treats student loans partly as loans, since some portion will be repaid, and partly as capital transfers, since some will not.

Under this partitioned loan-transfer approach, what counts to public sector net borrowing and public sector net financial liabilities is the transfer less modified interest, the interest accruing on the loan portion.