Student Loan Repayment Plans Debate
Full Debate: Read Full DebateDepartment: Department for Education
Helen Hayes
Main Page: Helen Hayes (Labour - Dulwich and West Norwood)Department Debates - View all Helen Hayes's debates with the Department for Education
(1 day, 8 hours ago)
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Helen Hayes (Dulwich and West Norwood) (Lab)
It is a pleasure to see you in the Chair today, Ms Lewell. I thank my hon. Friend the Member for Ilford South (Jas Athwal) for his powerful opening speech and for securing the debate. I declare an interest as a mum of two students who are currently in higher education.
I want to acknowledge the strength of feeling among graduates with plan 2 loans and the material impact that current loan terms and the planned freeze in the repayment threshold are having on them. The generation of graduates with plan 2 loans studied between September 2012 and July 2023. They are the same generation who have found themselves increasingly locked out of the housing market, unable to put down roots in their community, and squeezed by the cost of living and the cost of renting in particular. Plan 2 loans add unfairly to those cost pressures.
If the promise of education is that if you work hard, do well and get a good degree, then that degree will be a passport to increased earnings and a good standard of living, that promise is not being fulfilled for far too many in the plan 2 generation. I believe there is an urgent need to look at the value for money of student loans. We need to do that for the plan 2 generation, but also for the generation of young people who are considering university. We need to recognise that students from the lowest-income backgrounds are most likely to be deterred by the perception that university is not good value for money because of the impact of the loans.
I share concerns about unilateral changes in payment terms; that does not meet the standard of fairness that we would expect from any other lender. I share concerns that loans are linked to a measure of inflation that the Government do not use as the basis for other calculations.
However, in short, the solutions are not straightforward. The Education Committee is currently undertaking work on the funding of higher education institutions, and its headline conclusion is that they are very fragile. The proposals made by the Leader of the Opposition this week are entirely untenable, and I reject in particular her war on arts degrees, which will always have an important place in our education landscape.