Sharia-compliant Student Finance

Lord Blunkett Excerpts

Wednesday 13th November 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

I think the Student Loans Company works quite hard in order to ensure that students understand the commitments that they are taking on with student loan finance. But it is a fair point that it is important not just for the Government but for higher education institutions to be clear with students about what they are getting for their money, and then for us and the Student Loans Company to be clear with students about the impact later on in their life of the loans they are taking out.

I will reiterate the point I made earlier that sometimes there is confusion among students, who think that student debt is similar to other forms of debt, when clearly it is very different. Repayment is linked to earnings levels and, at the end of the term, any remaining debt will be written off. I try to say that as frequently as possible. It is a fair challenge that we should ensure that as many students as possible understand that that is the situation with student debt.

[Lord Blunkett (Lab)]

Would my noble friend the Minister recommend that anyone who is confused should go on Martin Lewis’s website? He is very clear about this and it might help them to understand precisely what the scheme is all about.