Student Loan Repayment Plans Debate
Full Debate: Read Full DebateDepartment: Department for Education
Rebecca Long Bailey
Main Page: Rebecca Long Bailey (Labour - Salford)Department Debates - View all Rebecca Long Bailey's debates with the Department for Education
Student Loan Repayment Plans
Rebecca Long Bailey Excerpts(1 day, 8 hours ago)
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Rebecca Long Bailey (Salford) (Lab)
I thank my hon. Friend the Member for Ilford South (Jas Athwal) for securing the debate. One Salford graduate who borrowed just over £41,000 graduated in 2018 owing more than £47,000 because interest had accrued while they were still studying. After eight years of repayments and nearly £20,000 paid back, their balance is now significantly higher than it was when they graduated.
Another graduate told me they owed £59,000 in 2020; that has now increased to more than £75,000, despite steady monthly repayments. That is not how people understand a loan to function and many borrowers were never properly warned that Governments could retrospectively alter key repayment terms.
The requests from campaigners are reasonable: reverse the repayment threshold freeze, tackle the unfair interest rate metrics and protect against retrospective changes. Those are not radical requests; they restore trust. We must understand that the marketisation of higher education has failed. We must reform the loans system, but we must ensure that our ultimate goal is more ambitious. We should abolish tuition fees and replace them with a sustainable, publicly funded model for higher education and university research, providing long-term stability for institutions and genuine opportunities for students, regardless of background.