Students: Loans
The question
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of student loan repayments on graduates’ ability to meet basic living costs in South Basildon and East Thurrock constituency.
Answered by Josh MacAlister
The department does not hold data specific to South Basildon and East Thurrock.
Unlike commercial loans, student loan repayments are linked to income, not to the amount borrowed or interest applied. Borrowers only start repaying their student loan once earnings exceed the threshold, after which they repay at a rate of 9% of income above the repayment threshold, meaning low earning borrowers are protected. For example, a borrower earning £27,000 who started their course in academic year 2025/26 will repay £15 per month.
If their income drops, so do the repayments they make towards their student loan. And at the end of the repayment term any outstanding loan debt, including interest accrued, will be cancelled with no detriment to the borrower, and debt is never passed on to family members or descendants.
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