Student Loan Book: Sale
Debate between David Drew and Sam Gyimah(5 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Mr Gyimah
These loans are earlier loans and not affected by the current interest rate policy. I make it absolutely clear that whoever buys the loans cannot alter the terms of the loan. The post-18 review is looking at interest rates on existing loans, as well as a number of other aspects of the student finance system.
Dr David Drew (Stroud) (Lab/Co-op)
Will the Minister elucidate how many students have yet to make any payments in terms of their loan obligations? What analysis have the Government made of why they have not yet made any payments?
Mr Gyimah
The hon. Gentleman, an experienced parliamentarian, will know that we have an income-contingent loan system. The repayment threshold has recently been raised from £21,000 to £25,000, thereby benefiting students to the tune of £300 a year. Deliberately designed into the system is a subsidy from the Government; we understand that 45% of students will not pay back the loans in full—that is the subsidy that goes into the loan system. The system means that no one is barred from going to university as a result of their personal financial circumstances.