Student Loans: Interest Rates

Lord Storey Excerpts

Monday 11th September 2017 Lords Chamber

[Viscount Younger of Leckie]

I have those figures but I will have to write to the noble and learned Lord with them; they are in my facts somewhere.

[Lord Storey (LD)]

My Lords, when student loans were introduced by the Government, students were promised that the threshold of £21,000 would increase in line with average earnings. Why has that commitment not been delivered?

[Viscount Younger of Leckie]

That is because it is not necessary to do so. The proportion of borrowers liable to repay when the £21,000 threshold took effect in April was significantly lower than could have been envisaged when the policy was introduced. The threshold would now be set at £19,000 if it were to reflect the same ratio of average earnings.