Question to the Department for Education:

To ask the Secretary of State for Education, whether she has plans to review the commencement date of interest accruing on student loans.

We inherited the student loans system, including Plan 2, which was devised by the previous government. Threshold freezes have been introduced to protect taxpayers and students now, alongside future generations of learners and workers.

Borrowers on Plan 5 student loans only accrue interest at Retail Price Index, currently 3.2%. This means graduates will not repay more than they borrow in real terms.

Interest accrues on loan balances from the first day the loan is paid to the learning provider, and/or to the student, until the loan has been repaid in full or cancelled. Interest rates do not impact monthly repayments made by borrowers.