Students: Loans
The question
To ask the Secretary of State for Education, if she will make an estimate of the potential impact to the public pursue of (a) cancelling all outstanding student loan balances on existing borrowers; (b) cancelling all outstanding student loan balances for particular occupations for existing borrowers; and (c) cancelling all outstanding student loan balances for particular subjects studied, for existing borrowers.
Answered by Josh MacAlister
Cancelling all outstanding student loan balances for existing student loan borrowers would lead to reduction of the fair value of the entire loan book to zero. The fair value of the student loan book, published in the most recent annual accounts, as at 31 March 2025 was £157.9 billion.
The department has not estimated the impact to the public purse of cancelling all outstanding student loan balances for subsets of graduates who studied particular subjects or work in specific professions.
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