Student Loans

Graham Stuart Excerpts

Wednesday 18th March 2026 Commons Chamber

[Graham Stuart (Beverley and Holderness) (Con)]

It is a pleasure to participate in this debate. Graduates were promised a fair deal, and we have heard all the promises that were made from when the current Prime Minister stood to be Leader of the Opposition to the announcements that were made afterwards. People were told to work hard, go to university and have a shot at a better life, and that their efforts would pay off. On those principles, Labour Members entirely agree with those of us in the Opposition.

The Education Secretary knows that those things should be in place, because in 2023 she wrote that graduates will pay less under a Labour Government. She, the actual Education Secretary, said that graduates would pay less under a Labour Government. Now in office, she says:

“We are where we are.”

The Chancellor knows it, too. In January, she said the student loan system was fair and reasonable—in January, this year. Yesterday, suddenly, she admitted it was broken, but, importantly, not a priority.

And the Leader of the Opposition knows it. Last month, she said the current system created an unfair debt trap for graduates. But what is the difference? The difference is that the Leader of the Opposition has a plan—a plan to cut interest rates that no one would accept on a normal loan. The moment a graduate throws their cap in the air, unfortunately the Labour party sees a target to tax. We Conservatives see a dream to back—dreams like Sammi’s. Sammi, from Keyingham in my constituency, is one of the first in her family to go to university. She borrowed £40,000. She works in the medical field and makes a payment every month, but she now owes £46,000 because of interest rates that no one would accept on a normal loan. Graduates such as Sammi need to earn £66,000 before they even start to reduce their loans. By refusing to cap interest at the rate of inflation to help people like Sammi, as the Conservatives are proposing today, the Chancellor, who admits that the system is broken, is making them pay more for longer.

For too many, the degree that was meant to help them get on is now holding them back. That is why, in a tough situation, we are making tough proposals about finding courses that are not adding value. They exist. We have had Liberal Democrat and Labour Members suggesting that there is not a single course at a single institution in this country that should not be put under question. That is not the right attitude.

Under our plans, interest rates on plan 2 student loans will be capped at inflation, saving graduates tens of thousands of pounds. A doctor from Hedon, graduating in 2029 with £80,000 of student debt, will save £58,000 in lifetime repayments. An engineer from Roos with £40,000 of student debt earning £50,000 would clear their loan five years faster. So, when these young people enter the workforce or start a business of their own, they will have the space to build a future of their own: saving for a home, starting a family, creating something of value—fairness, a future, freedom.

People like Sammi are the risk-takers, the innovators and the builders of what is to come and they are being let down by this Government. That is the choice before this House tonight: vote for our plan to make effort pay again or do nothing, because it turns out that graduates are at the back of the queue. Colleagues on the Government Benches know the right thing to do. Deep down, the Education Secretary knows it and the Chancellor knows it. What they need now is the courage to do something about it.