Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of interest rates for university student loans on (a) students and (b) their families.

Interest rates on student loans do not affect monthly repayments made by borrowers. Regular repayments are based on a fixed percentage of earnings above the applicable repayment threshold, not on amount borrowed or the rate of interest. The income of the wider household/family is not included.

If income is below the relevant repayment threshold, or a borrower is not earning, they do not have to make any repayments. Any outstanding debt, including interest accrued, is written off after the loan term ends, or in case of death or disability, at no detriment to the borrower. The debt does not pass to the borrower’s family.

An impact assessment on the current student loan plan type can be accessed at: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.

The government is determined that the higher education funding system should deliver for our economy, universities and students. The department has taken the system under consideration and will continue to engage with stakeholders on this.