Sharia-compliant Student Finance
Debate between Lord Vaux of Harrowden and Baroness Smith of Malvern(1 week, 1 day ago)
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Baroness Smith of Malvern (Lab)
I am not sure whether the noble Lord is arguing for a wholesale reform of the student funding system—it would be legitimate if he were, although this Government have taken a different route at this point. I think it is important, notwithstanding the impact on the national finances, to be clear for individual students that an increase in their tuition fees and the loan they take out to fund them will not increase their repayments, because repayments of this loan are wholly linked to earnings levels, so no student will repay higher levels per month as a result of the most recent decision that the Government have taken to increase tuition fees.
Lord Vaux of Harrowden (CB)
My Lords, interest rates are not only a problem for Muslim students. Can the Minister explain why it is appropriate that all students should pay a rate of 7.3%, which is somewhat usurious, for the period in which they are studying?