Students: Loans
The question
To ask the Secretary of State for Education, what steps she is taking to ensure that young people are fully informed about student loan repayment terms.
Answered by Josh MacAlister
The government continuously reviews student finance to ensure it remains fair, sustainable, and supportive of students from all backgrounds.
Interest accrues on loan balances from the first day the loan is paid to the learning provider, and/or to the student, until the loan has been repaid in full or cancelled. Interest rates are linked to the Retail Price Index to maintain the real value of the loan over a long loan term but do not impact monthly repayments made by borrowers.
Prospective students have access to information across a range of platforms before submitting their loan application. Student loan terms and conditions make clear that the conditions of the loan may change in line with the regulations that govern the loans. Students sign these terms and conditions before any money is paid to them.
Repayments are calculated solely on earnings, not on amount borrowed or the rate of interest applied. Any outstanding loan, including interest accrued, will be cancelled after the loan term ends, and debt is never passed on to family members or descendants.
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