Plan 2 Student Loans: Repayment Terms

Lord Mohammed of Tinsley Excerpts

Tuesday 17th March 2026 Lords Chamber

[Baroness Blake of Leeds (Lab)]

I always listen to the noble Baroness’s questions with interest. I do not think it would be right for me to pre-empt the ongoing discussions. I think there is a general recognition that something needs to change, but it has to be done in the spirit of fairness while maintaining access for all students and making sure, as I said at the outset, that it is fiscally responsible in a complex financial situation.

[Lord Mohammed of Tinsley (LD)]

My Lords, I declare my interest, as I did last week, as my son recently graduated and my daughter has just started university. Will the Government consider reducing or capping the interest rates applied to Plan 2 loans, particularly during periods of high inflation, because students may well see their debt grow while they continue to make repayments?

[Baroness Blake of Leeds (Lab)]

The noble Lord refers to a complex situation, and it would be completely wrong of me to make any suggestion about changing interest rates or methods of repayment. But of course, all these matters are under consideration in such an important subject.