Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the adequacy of information provided to 17–18-year-old students entering higher education in 2012 on the interest rate structure of Plan 2 student loans, including the application of Retail Price Index plus up to 3%.

Plan 2 loans were designed and implemented by previous governments. Prospective students had wide access to information across a range of platforms before submitting their applications.

Plan 2 loans interest rates are applied at the Retail Price Index (RPI) only, then variable up to RPI +3% depending on earnings. Repayments are calculated solely on earnings, and not on the amount borrowed or the rate of interest applied. Crucially, any outstanding loan and interest is written off at the end of the loan term, and debt is never passed on to family members or descendants.