Higher Education: Student Loans

Debate between Lord Ahmad of Wimbledon and Lord Barnett

Wednesday 26th March 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

My noble friend is spot on. She mentioned the threshold figure of £21,000. To reiterate, no graduate who earns less than £21,000 is required to repay their loan. She also makes a very sensible suggestion about allowing this new scheme to bed in to allow for a suitable review. This is about people’s futures. I have looked at some of the policies of the party opposite and, at the moment, there seems to be a real vacuum there.

[Lord Barnett (Lab)]

My Lords, are the Government planning to sell off the debts? If so, what terms are they looking for? Would the amounts be much higher than those written off at the moment, and would there be any weakening or strengthening of the terms?

[Lord Ahmad of Wimbledon]

As the noble Lord may well know, in terms of the student loan book, we previously had mortgage-style loans, and they were sold off for £160 million. It will, again, be ensured that any future sell-offs always provide value for money for the taxpayer.