Students: Loans
The question
To ask the Secretary of State for Education, what is her most recent estimate of (1) the Resource Accounting and Budgeting charge and (2) the estimated cost to Government of support for the student finance system, based on future loan write-offs and interest subsidies, (a) in net present-value terms, and (b) as a proportion of the initial loan outlay.
Answered by Josh MacAlister
The Resource Accounting and Budgeting (RAB) charge, the government subsidy anticipated on student loans issued in any particular financial year, is calculated as the present value of student loan outlay less expected future repayments. This is in accordance with relevant International Financial Reporting Standards and guidance from HM Treasury’s's Government Financial Reporting Manual.
In the 2024/25 financial year, the RAB charge was £6.2 billion, or 29.6% of the £20.7 billion of the student loans issued.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →