Question to the Department for Education:

To ask His Majesty's Government what plans they have to reform the terms of repayment for student loans.

The government is taking decisive action to better support disadvantaged students, make things fairer for graduates, and create a more flexible, responsive post-16 education system through the introduction of the Lifelong Learning Entitlement in January 2027.

Since 2024, we have raised the Plan 2 repayment threshold twice, protected borrowers from the risk of inflation shocks by capping interest rates on Plan 2 and Plan 3 loans at 6% for the 2026/27 academic year, and future-proofed maintenance loans by committing to increase them every year in-line with forecast inflation. Further, we are making care leavers automatically eligible for the maximum rate of maintenance loan, and we will be reintroducing targeted, means-tested maintenance grants in the2028/29 academic year, funded by a levy on providers for international students.

We will continue to look for ways to make the system fairer for students, graduates and taxpayers in a financially sustainable way.