Gordon Marsden – 2016 Parliamentary Question to the Department for Business, Innovation and Skills
The below Parliamentary question was asked by Gordon Marsden on 2016-01-27.
To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the RAB charge for students entering higher education in England in 2016-17 who take up a full maintenance loan and tuition fees when finishing a three-year course; and if he will make a statement.
Joseph Johnson
The Resource Accounting and Budgeting (RAB) charge is calculated for the total full time student population, rather than separately for students on courses of different lengths or on the basis of the size of the loans taken out. We estimate that the RAB charge for full-time tuition fee and maintenance loans, and part time fee loans, is between 20% and 25%.
These estimates take into account the changes to student finance and the new HM Treasury discount rate used to value the student loan book announced at the Spending Review and Autumn Statement 2015. We will update our estimates in summer 2016 and publish these at the same time as BIS accounts, alongside an updated version of the simplified loan repayments model.
