Overseas Students: Loans:Written question - 39517

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(Blackpool South)
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Asked on: 06 June 2016
Department for Business, Innovation and Skills
Overseas Students: Loans
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.
A
Answered by: Joseph Johnson
Answered on: 09 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

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