Student Loans

Helen Hayes Excerpts

Tuesday 15th September 2026 Commons Chamber

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I thank my hon. Friend for her Committee’s excellent work on the important issue of student loans and for the good communication that she maintained with my Select Committee during her inquiry. The Education Committee concluded earlier this year that there is a genuine crisis in the financial sustainability of our universities as a result of many different pressures bearing down on them. Does she agree that if the Government do not bring forward additional measures to improve the long-term affordability of student loans, as she recommends, the risk is that more and more young people will decide not to pursue a university education? That would not only mean that they miss out on the potentially transformative impacts of such an education, but serve further to undermine the financial viability of our universities.

[Dame Meg Hillier]

I thank my hon. Friend for the excellent work that she and her Committee do. We know that there is a crisis in the higher education system, but there is also a huge challenge for the graduates paying off these loans. It is a multifaceted picture, so I am pleased that the Government are looking at reviewing it, but people have just started plan 5 repayments, and a review that might see any changes is still a long way off.

We need to have the national conversation that I mentioned about a 50:50 balance. Society benefits from most graduates. They are not just taking; they are actually giving back, and it is really important that we recognise that in our national conversation. Frankly, universities are really struggling in part because of the way in which fees are structured, meaning that they are not getting enough money, but they are still very expensive for students, so nobody is winning in this situation.