Question to the Department for Education:

Her Majesty's Government what estimate they have made of the long-term cost of providing student loans.

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%.