Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the potential effect of interest rate changes on student loans on graduate income.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The student loan system in England removes financial barriers for those hoping to study higher education, while sharing its costs between learners and the general taxpayer, which is fair. After finishing study, monthly student loan repayments are linked to income, not to interest rates or the amount borrowed. Repayments are made only on earnings above the repayment threshold, and borrowers are protected. If their income drops, so do their repayments. Any outstanding debt is written off after the loan term ends at no detriment to the borrower.
As part of the review of post-18 education and funding, we are carefully considering a range of options to ensure that student finance continues to deliver value for money for both students and the taxpayer. The interim conclusion of the review of post-18 education and funding was published on 21 January 2021, and we will conclude the review in full in due course.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the potential merits of a reduction in student tuition fees.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The department remains committed to a sustainable funding model for the higher education system which supports high value provision, meets the skills needs of the country and maintains the world-class reputation of UK higher education.
We continue to consider carefully the recommendations made by the independent panel that reported to the Review of Post-18 Education and Funding. This includes their proposals relating to changes to tuition fee caps and the level of Strategic Priorities Grant funding that is paid directly to providers by the Office for Students. The department plans to set out a full conclusion to the Review in due course.
The government has announced that maximum tuition fee caps for academic year 2022/23 will be frozen at their current levels to deliver better value for students and to keep the cost of higher education under control.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment he has made of the adequacy of funding for higher education.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The department remains committed to a sustainable funding model for the higher education system which supports high value provision, meets the skills needs of the country and maintains the world-class reputation of UK higher education.
We continue to consider carefully the recommendations made by the independent panel that reported to the Review of Post-18 Education and Funding. This includes their proposals relating to changes to tuition fee caps and the level of Strategic Priorities Grant funding that is paid directly to providers by the Office for Students. The department plans to set out a full conclusion to the Review in due course.
The government has announced that maximum tuition fee caps for academic year 2022/23 will be frozen at their current levels to deliver better value for students and to keep the cost of higher education under control.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the Department for Education:
To ask the Secretary of State for Education, pursuant to the Answer of 21 September 2021 to Question 49129, on Students: Loans, when his Department plans to publish the conclusion to the Post-18 education and funding review.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
Further to the Interim Conclusion to the Review of Post-18 Education and Funding published in January of this year, we continue to consider the recommendations made by the independent panel that reported to the review, and plan to conclude it in full in due course.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment he has made of the potential merits of maintaining the student loan repayment threshold at its current level in England.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
As part of the wider Review of Post-18 Education and Funding, we continue to consider carefully the recommendations made by the independent panel that reported to the review, including those around fees and funding for higher education. We plan to set out a full conclusion to the Review in due course.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Education:
To ask the Secretary of State for Education, whether he plans to lower the student loan repayment threshold from £27,000 to £23,000.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
We are committed to a sustainable funding model for our higher education system that supports high value provision, meets the skills needs of the country and maintains the world-class reputation of UK higher education.
The government is considering its response to the Review of Post-18 Education and Funding carefully, including a range of options to ensure that student finance continues to deliver value for money for both students and the taxpayer, and will set out a full conclusion in due course.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps he is taking to help ensue that Muslims can access student finance.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The government understands the concerns held by some Muslim students and their families about student finance. The department have been carefully considering an alternative student finance product, alongside wider reforms to the higher education system, and an update will be provided alongside the conclusion to the Review of Post-18 Education and Funding. The interim conclusion of the Review of Post-18 Education and Funding was published on 21 January 2021, and we will conclude the Review in full at a future date.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what progress the Government has made on introducing a Takaful-based university fee funding structure.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The government has been considering an Alternative Student Finance product carefully alongside wider reforms to the higher education system and will provide an update alongside the conclusion to the Review of Post-18 Education and Funding. The interim conclusion of the Review of Post-18 Education and Funding was published on 21 January 2021, and we will conclude the Review in full at a future date.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Education:
To ask the Secretary of State for Education, with reference to the IFS's briefing note, Further education and sixth form spending in England, published on 18 August 2021, what assessment he has made of potential effect the IFS-predicted 17% rise in the number of these students aged between 16-18 between 2019 and 2024 on education provision; and if he will provide a longer-term revenue and capital budget for education for students aged between 16-18.
Answered by Gillian Keegan - Secretary of State for Education
The department forecasts 16-19 year old student numbers, taking into account population forecasts, when considering the need for future education funding for 16-19 year olds. The future budgets for this education provision will be considered in the Spending Review this autumn.
The department invested an additional £291 million in 16-19 education in the 2021-22 financial year. This was in addition to the £400 million awarded in the 2019 Spending Review. This allowed us to maintain the base rate of funding at £4,188 for all types of providers and to continue with the increased funding for high value and high cost subjects, including the High Value Courses Premium.
This year, the department has also made £83 million in capital funding available through the Post-16 Capacity Fund to support eligible post-16 providers to accommodate the upcoming increase in 16-19 year olds. Bids are currently being assessed and the outcome will be announced in due course.
Asked by: Matt Western (Labour - Warwick and Leamington)
Question to the Department for Education:
To ask the Secretary of State for Education, what discussions he has had with the Chancellor of the Exchequer on retrospectively changing the terms of student loans for UK graduates.
Answered by Michelle Donelan - Secretary of State for Science, Innovation and Technology
The government is currently considering its response to the Review of Post-18 Education and Funding carefully. We are committed to driving up quality of standards and educational excellence and ensuring a sustainable and flexible student finance system. We will provide an update on our position as we conclude the post-18 review and are planning to consult in due course.