Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the adequacy of Plan 2 student loan interest rates, particularly for graduates from less advantaged backgrounds; and whether she is considering further reforms.

The government recognises that graduates are concerned about the level of interest applied to their student loans.

Student loan repayments are based on earnings rather than the amount borrowed or the interest accrued. For lower-earning borrowers, interest rates do not affect monthly repayment amounts and borrowers will only repay when their income exceeds the relevant repayment threshold. Any remaining balance, including interest, is written off after 30 years.

It is important that we maintain a sustainable student finance system that is fair to taxpayers while continuing to support access to higher education for students from all backgrounds. To this end, the government keeps all aspects of the student finance system, including student loan interest rates, under review.

My right hon. Friend, the Secretary of State for Education is at an early stage in her tenure and will continue to consider the concerns that have been raised regarding Plan 2 student loans.