Student Loan Interest Rates

Lord Alton of Liverpool Excerpts

Wednesday 27th March 2024 Lords Chamber

[Baroness Barran (Con)]

I think the noble Lord is aware that there is a cap on the interest rate, but I remind the House that interest rates do not impact on the income of borrowers. Repayments are a percentage of income above a repayment threshold, irrespective of interest rates.

[Lord Alton of Liverpool (CB)]

My Lords, on 18 March, on behalf of Hong Kong Watch, of which I am a patron, I chaired a meeting here in your Lordships’ House about the launch of a new report concerning the effect of international fees on the children of some of the 160,000 BNO passport holders who have arrived and been given such a welcome in the United Kingdom. Will the Minister undertake to speak to the right honourable Gillian Keegan, the Secretary of State, about the letter she has now received pointing out the lack of equity in charging BNO passport holders up to £50,000 each for five years if they study medicine, or £25,000 a year if they are at a Russell group university, and look instead at the Scottish model and also at the position of EU students on pre-settled and settled rates, who are able to qualify for home student fees after three years?

[Baroness Barran (Con)]

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.