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Students: Loans

Question for Department for Education

UIN 74983, tabled on 15 November 2021

To ask the Secretary of State for Education, if he will make an assessment of the financial effect of lowering the student loan repayment threshold on graduates (a) low, (b) middle and (c) high income households.

Answered on

22 November 2021

The student loan system in England removes financial barriers for those hoping to study higher education courses 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. Full information about this review and the interim conclusion can be found at