Student Loan Interest Rates Debate

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Department: Department for Education
Wednesday 27th March 2024

(1 month, 4 weeks ago)

Lords Chamber
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Baroness Barran Portrait Baroness Barran (Con)
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I would be delighted to talk to my right honourable friend the Secretary of State, but, as the noble Lord knows, this is a timing issue in terms of getting settled status. I appreciate that there is a lag in that happening.

Baroness Blower Portrait Baroness Blower (Lab)
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My Lords, what assessment have the Government made of the link between graduate debt, which inflates the debt-to-income ratio, and the inability of the younger generation to buy homes of their own?

Baroness Barran Portrait Baroness Barran (Con)
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I come back to my earlier answer: we have a system in which it is very clear that above a certain threshold, 9% of income goes to repaying part or all of a graduate’s debt. The overall package, obviously, in terms of affordability of mortgages and housing, is dependent on many issues, of which graduate debt is one.