Question to the Department for Education:

To ask His Majesty's Government what plans they have, if any, to introduce a graduate tax to replace tuition fee loans that would not incur additional borrowing above the current level for university student finance.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The government has no plans to implement a graduate tax, but the current loans system has many of the features of one. Income-contingent student loans and grants are an equitable way of funding higher education, as individuals who benefit financially from higher-level study make a fair contribution towards its cost, while lower earners are protected.

Question to the Department for Education:

To ask His Majesty's Government what is their latest estimate of the total public liability for student debt written off by the Treasury.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The department estimates the government subsidy on student loans issued in any particular financial year via the Resource Accounting and Budgeting (RAB) charge. This is calculated as the present value of student loan outlay less expected future repayments, in accordance with relevant International Financial Reporting Standards (IFRS) and guidance from HMT’s Financial Reporting Manual (FReM). In financial year 2024-25, the RAB charge was £6.2 billion, or 29.6% of the £20.7 billion of student loans issued.

Under the ONS’s methodology for measuring the impact of student loans, what counts to public sector net borrowing and public sector net financial liabilities is the transfer less modified interest – i.e. the portion of the student loan that will not be repaid, less the interest accruing on the portion that will. The forecast transfer portion in 2025-26 for full-time Plan 5 loans is 31%.

Question to the Department for Education:

To ask His Majesty's Government whether University student fee loans are classified as public sector borrowing.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The fiscal impact of student loans is measured by the Office for National Statistics (ONS). The statistics the ONS publishes are independent, following methodologies designed in consultation with the international statistical community and in line with the European System of Accounts (ESA). The ONS treat student loans partly as loans, since some portion will be repaid, and partly as capital transfers, since some will not. This treatment applies both to tuition fee loans and maintenance loans. Under this partitioned loan-transfer approach, what counts to public sector net borrowing and public sector net financial liabilities is the transfer, less modified interest – the interest accruing on the loan portion.

Question to the Department for Education:

To ask His Majesty's Government what is the average university student debt for (1) tuition fees, (2) maintenance loans, and (3) tuition fees and maintenance loans combined, in each year since 2010.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

A student’s total loan balance will depend on the number and type of loans taken, the type and length of study, the repayment plan, and how long it has been since entering repayment, as interest accrues over time alongside any income‑contingent or voluntary repayments.

The average amounts paid to borrowers for 1) tuition fee loans, 2) maintenance loans and 3) combined loans since 2013/14 are attached in Annex 1.

The average loan balances by repayment cohort are attached in Annex 2. The amount owed by borrowers in each financial year depends on the year they entered repayment for their loans. These data are not split by loan type, however, in 2024/25, around 89% of students took out both maintenance and tuition fee loans.

Question to the Department for Education:

To ask His Majesty's Government what is the average university student debt for (1) tuition fees, (2) maintenance loans, and (3) tuition fees and maintenance loans combined.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

A student’s total loan balance will depend on the number and type of loans taken, the type and length of study, the repayment plan, and how long it has been since entering repayment, as interest accrues over time alongside any income‑contingent or voluntary repayments.

The average amounts paid to borrowers for 1) tuition fee loans, 2) maintenance loans and 3) combined loans since 2013/14 are attached in Annex 1.

The average loan balances by repayment cohort are attached in Annex 2. The amount owed by borrowers in each financial year depends on the year they entered repayment for their loans. These data are not split by loan type, however, in 2024/25, around 89% of students took out both maintenance and tuition fee loans.

Question to the Department for Education:

To ask His Majesty's Government what percentage of university students are expected to never pay off their total debt.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The government is forecast to subsidise £95.5bn of the £238.0bn total face value of the student loan book as of 1^st April 2024.

Of undergraduate borrowers taking their first loan outlay in the academic year 2025/26 under Plan 5 terms, 45% are expected to never repay their loan in full.

For those who started in 2022/23 under Plan 2 68% were expected to never repay their loans in full.

For Masters loans, 32% are expected to never fully repay their loan.

This subsidy is a conscious investment in our young people and the skills capacity, people and economy of this country.

These statistics are publicly available in the student loan forecasts for England publication for the financial year 2025-26 which is available here: Release home - Student loan forecasts for England - Explore education statistics - GOV.UK.

Question to the Department for Education:

To ask His Majesty's Government what is the projected total liability for university student debt for both tuition fee loans and maintenance loans that will be written off.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The government is forecast to subsidise £95.5bn of the £238.0bn total face value of the student loan book as of 1^st April 2024.

Of undergraduate borrowers taking their first loan outlay in the academic year 2025/26 under Plan 5 terms, 45% are expected to never repay their loan in full.

For those who started in 2022/23 under Plan 2 68% were expected to never repay their loans in full.

For Masters loans, 32% are expected to never fully repay their loan.

This subsidy is a conscious investment in our young people and the skills capacity, people and economy of this country.

These statistics are publicly available in the student loan forecasts for England publication for the financial year 2025-26 which is available here: Release home - Student loan forecasts for England - Explore education statistics - GOV.UK.

Question to the Department for Education:

To ask His Majesty's Government, further to the Written Answer by Baroness Smith of Malvern on 22 July (HL999), what is the latest total for student loans debt.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

As of 26 July 2026, the outstanding balance of tuition fee loans for further and higher education was £169.5 billion. The total outstanding balance of student loan debt, that includes tuition fee and maintenance loans, across all student loan products was £307.5 billion.

The latter figure includes Advanced Learner Loans, undergraduate tuition fee loans, and undergraduate and postgraduate maintenance loans administered by Student Finance England to England domiciled students, including loans taken out by those still in study.

Question to the Department for Education:

To ask His Majesty's Government, further to the Written Answer by Baroness Smith of Malvern on 22 July (HL1000), what is the latest total for student fees debt.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

As of 26 July 2026, the outstanding balance of tuition fee loans for further and higher education was £169.5 billion. The total outstanding balance of student loan debt, that includes tuition fee and maintenance loans, across all student loan products was £307.5 billion.

The latter figure includes Advanced Learner Loans, undergraduate tuition fee loans, and undergraduate and postgraduate maintenance loans administered by Student Finance England to England domiciled students, including loans taken out by those still in study.

Found: Dodds of Duncairn Lord Elliott of Ballinamallard Baroness Foster of Aghadrumsee Baroness Goudie Lord Hain

Found: of Duncairn; Lord Elliott of Ballinamallard; Baroness Foster of Aghadrumsee; Baroness Goudie; Lord Hain