Support for University Students: Covid-19

Lord Forsyth of Drumlean Excerpts

Monday 8th February 2021 Lords Chamber

[Lord Forsyth of Drumlean (Con) [V]]

My Lords, I congratulate the Minister on the additional help that has been given to students at this time but, given that we are still charging students an interest rate of 5.6% on student loans while they are studying, when the Government can borrow money at 0.3%, might this not be a good time to implement the Economic Affairs Committee recommendation that we cut the interest rate on student loans?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, my noble friend has long taken an interest in this matter through his work on your Lordships’ Economic Affairs Committee. The Government have already announced that the maximum fees will remain at £9,250 for a standard full-time course, and we intend to freeze the maximum tuition fee caps for 2022 and 2023—the fifth year in succession that maximum fees have been frozen—to make sure that university education is available to, and affordable for, those who want it.