Students: Loans
The question
To ask the Secretary of State for Education, if she will take steps to ensure that the proposed reforms of the student finance system include (a) refinancing and (b) reform options for historic student loan repayments.
Answered by Janet Daby
The government is committed to supporting the aspiration of every person who meets the requirements and wants to go to university.
The student finance system removes upfront financial barriers so that everyone with the ability and desire to enter higher education (HE) can do so. Student loan debt is not like other debt, as monthly repayments depend on earnings, not on interest rates or the amount borrowed. No-one who earns under the student loan repayment threshold is required to make any repayments at all. At the end of the loan term, any outstanding loan balance, including interest built up, is be written off. This write-off is a deliberate investment in our people and the economy. No commercial loan offers this level of protection.
The department aims to publish our plans for HE reform soon as part of the Post-16 Education and Skills Strategy White paper.
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