Education: Student Loans

Lord Forsyth of Drumlean Excerpts

Monday 3rd June 2013 Lords Chamber

[Baroness Garden of Frognal]

Yes indeed, my Lords, and I can only be grateful that I am not standing here answering on behalf of the United States’ system—because I do not have a brief about that. The system was set up to be as fair as possible to the students whom we wish to encourage to go into higher education if they have the potential and aspiration to do it.

[Lord Forsyth of Drumlean]

My Lords, does my noble friend think that enough is done to make students aware that although they do not have to repay these loans until they have employment above a certain salary, the interest accumulates immediately? Many of them find themselves facing much larger bills than they imagined.

[Baroness Garden of Frognal]

One of the really important things, which my noble friend touches on, is that no student has to pay these fees immediately. They start being payable once the students graduate and are in a job where they are earning sufficient money to pay them back, and the payments are then proportionate to their income. However, my noble friend is right that we need to do as much as we can to make sure that students are fully clear about the undertakings they are taking on.