Student Loans

Lord Sheikh Excerpts

Thursday 23rd July 2020 Lords Chamber

[Lord Parkinson of Whitley Bay]

My Lords, that message, which was present on other parts of the site, has been present since 17 July on the section for making voluntary repayments as well, but student finance is, in law, a loan, so the Student Loans Company of course has to follow the legislation as it stands.

[Lord Sheikh (Con) [V]]

My Lords, at the outset, I declare that I co-chair the APPG on Islamic Finance. In 2013, David Cameron spoke at the World Islamic Economic Forum and made a promise to introduce a sharia-compliant student loan scheme. In March 2017 and in July 2019, I and other noble Lords spoke on the subject in your Lordships’ House. We were told that the Government were committed to introducing a suitable arrangement; I understand that a comprehensive submission has been made by the advisers to the DfE on the arrangements. There is no mention of sharia-compliant student loans on the SLC website. Can my noble friend say what progress has been made regarding the scheme and what is the timetable for its introduction?

[Lord Parkinson of Whitley Bay]

My Lords, my noble friend raises a very important point, particularly for the many Muslim students who study or wish to study in our universities. I do not have that information to hand, but I will find out and write to him with the answer.