Lord Forsyth of Drumlean
Main Page: Lord Forsyth of Drumlean (Conservative - Life peer)Department Debates - View all Lord Forsyth of Drumlean's debates with the Leader of the House
(8 years, 9 months ago)
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Baroness Evans of Bowes Park
This proposed scheme has nothing to do with sharia law. It is about ensuring that all young people have access to university. We are very keen to try to ensure that we can provide a product that will help them to do so.
Lord Forsyth of Drumlean (Con)
My Lords, can my noble friend explain exactly how this product will work?
Baroness Evans of Bowes Park
I am happy to. The takaful model will operate as a type of mutual fund. Students will apply for finance from the fund the same way that they would apply for an equivalent student loan and will enter a contract promising to repay a contribution. When they are earning above the repayment threshold, as with an equivalent student loan, they will make their contributions, which will be used to fund the education of future students. It is a type of mutual fund, which is why BIS cannot introduce it without primary legislation, as the Secretary of State does not have those powers.