Written questions, answers and statements

Overseas Students: Loans

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Question for Department for Business, Innovation and Skills

UIN 39517, tabled on 6 June 2016

Question

Gordon Marsden
Labour
Blackpool South
Commons

To ask the Secretary of State for Business, Innovation and Skills, what the expected Resource Accounting and Budgeting charge is for student loans paid out to EU students studying in England.

Answer

Joseph Johnson
Conservative
Orpington
Commons

Answered on

9 June 2016

The Resource Accounting and Budgeting (RAB) charge, which represents the value of the part of the loan that is not expected to be repaid, is not calculated separately by the nationality of the students. We estimate that the RAB charge for full time tuition fee and maintenance loans is between 20% and 25%.

My Department publishes an updated estimate of the RAB charge each year, close to the time of the publication of BIS accounts. The most recent estimate of the RAB charge was published on 18 February 2016. The estimate, together with a simplified version of the model for calculating the RAB charge can be found here:

http://tinyurl.com/stepmodel

Answered by

Department for Business, Innovation and Skills
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