Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the combined marginal deduction rate faced by a graduate with a Plan 2 loan earning above the higher rate threshold, once income tax, National Insurance and the 9% loan repayment are accounted for.

The rate of repayment for undergraduate student loans is 9% on all income above the relevant threshold and 6% on all income above the relevant threshold for postgraduate loans. Other factors, including any reliefs, pension contributions or receipt of certain means-tested welfare benefits could adjust an individual’s effective tax rate.