Student Loans - Business, Innovation and Skills Committee Contents

Annex A: Timeline of student loan policies

·  1990: Student loans introduced to support students.

·  1990-1998: 'Mortgage-style' loans issued. Borrowers earning above a threshold amount repay a fixed monthly amount over a fixed period. Approximately £4 billion paid out.

·  1998 & 1999: Two sales passed a passed a large proportion of mortgage-style student loan-book to the private sector.

·  1998-PRESENT: 'Income-contingent' loans issued. Repayments and interest charges depend on borrowers' earnings. Borrowers only repay once earning above a set threshold. Approximately £51 billion paid out to date.

·  NOV 2013: The Government announced the sale of the remaining mortgage style loans to a private investment consortium. Book value of £890 million sold for £160 million.

·  NOV 2013: The National Audit Office (NAO) published a report on student loan repayments. It published a review of the processes behind collection and made recommendations to improve.

·  DEC 2013-PRESENT: The Government confirmed that the Department was preparing to sell early cohorts of the income-contingent repayment loan book. This sale should depend entirely on the Department's ability to prove value for money, and the Permanent Secretary, as Accounting Officer, will take a sale decision in due course.

·  JAN 2014: The Business, Innovation and Skills Committee conducted an inquiry into student loans.[120]


120   Source National Audit Office and Business, Innovation and Skills Committee analysis Back

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Prepared 22 July 2014