Student Loans: Review

Baroness Winterton of Doncaster Excerpts

Tuesday 24th February 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

As a Government, we recognise and support the public subsidy that the student finance scheme implies for students. For plan 2 full-time borrowers who started their courses in 2022-23, for example, we expect that only 32% of them will repay their loans in full. This is therefore a public subsidy for those individuals and for realising the broader public benefits that higher education brings, not only for those who have the opportunity to go through it but for society more broadly.

[Baroness Winterton of Doncaster (Lab)]

My Lords, I am glad to hear that my noble friend the Minister thinks that changes could be made to the system to make it fairer. However, does she agree that it is not sensible to think that there was a golden era when everybody went to university without worry? I went to university during a time when there were maintenance grants, but there was huge pressure in those times, particularly on people from lower incomes whose parents could not afford to put the top-ups in. We need to remember that when we consider the changes that need to be made. If she can make it fairer, that is good, but do not imagine that there was some previous time when everything was wonderful.

[Baroness Smith of Malvern (Lab)]

My noble friend makes a very important point. I went to university without a student loan, but I was part of only 14% of young people who were able to benefit from higher education. That figure now stands at more than 50%, and we need a student finance system that recognises that. I reiterate that the Government are making changes to student finance. We will reintroduce student grants and we are increasing maintenance loans for students. We are therefore opening up the opportunity for more students from lower-income backgrounds to get the benefits that higher education brings.