Gordon Marsden – 2016 Parliamentary Question to the Department for Business, Innovation and Skills
The below Parliamentary question was asked by Gordon Marsden on 2016-06-06.
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.
Joseph Johnson
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:
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