Liam Byrne – 2014 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Liam Byrne on 2014-04-07.

To ask the Secretary of State for Business, Innovation and Skills, what his Department’s estimate is of the latest RAB charge for further education students.

Matthew Hancock

The Department models the proportion of loans which we expect will not be repaid (the RAB charge). The 2012 impact assessment on the introduction of 24+ Advanced Learning Loans stated that we anticipated this RAB charge would be 60% of the total loan amount. Now that we are beginning to receive figures on actual learner numbers, we are reviewing the assumptions within the RAB charge model. This 60% figure may therefore be subject to change in the future.