Student Loan Interest Rates Debate
Full Debate: Read Full DebateDepartment: Department for Education
Lord Addington
Main Page: Lord Addington (Liberal Democrat - Excepted Hereditary)Department Debates - View all Lord Addington's debates with the Department for Education
Student Loan Interest Rates
Lord Addington Excerpts(8 months ago)
Lords ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Lord Addington (LD)
My Lords, the student loan system is renowned for bad repayment rates and, as has just been mentioned, high interest rates. Would it not be the right time to get some system that the Government back and is on the government books? That is what needs to be done to get us away from the accounting procedure. It is ridiculous. I declare an interest as somebody who has a daughter who is coming up to her finals.
Baroness Barran (Con)
I think the noble Lord is aware that there is a cap on the interest rate, but I remind the House that interest rates do not impact on the income of borrowers. Repayments are a percentage of income above a repayment threshold, irrespective of interest rates.