Student Loan Interest Rates

Baroness Falkner of Margravine Excerpts

Wednesday 27th March 2024 Lords Chamber

[Baroness Barran (Con)]

As my noble friend touched on, the Government are trying to balance, or triangulate, a number of things. One is affordability for students, hence the freeze we have had for seven years on fees. Another is addressing poor-quality provision—at the other end of the issue from the one my noble friend raises—through the new Office for Students regime. In relation to motivation, reward and recognition for the highest-performing institutions, a review of allowing indexation of fees based on the TEF is not under consideration currently, but I will say that having a high-quality teaching framework does allow for strong recruitment and research income.

[Baroness Falkner of Margravine (CB)]

My Lords, has the Minister considered the level of graduate earnings currently and the threshold she refers to? Leading on from the question from the noble Lord, Lord Johnson, in light of those two parameters, have the Government thought of increasing the level of fees so that those who go on to very high earnings can pay a proportionate amount, making it more progressive than the flat rate that now applies?

[Baroness Barran (Con)]

Of course, those who go on to much higher earnings end up repaying much more than those on lower earnings, but no additional consideration is currently being given to the suggestion from the noble Baroness.