Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department has modelled the potential impact of Plan 2 interest rates on graduate retention in key public service professions.

The department does not provide analysis for impacts of policies on graduate retention in key public service professions.

Borrowers, including those in public services professions, remain protected as repayments are determined by income, not the amount borrowed. If a borrower’s salary remains the same, their monthly repayments will also stay the same.

Borrowers only start repaying their student loan once earnings exceed the student loan repayment threshold, after which they pay 9% of income above that level. The Plan 2 repayment threshold freeze does not change that or increase borrowers’ student loan balances. At the end of the repayment term any outstanding loan debt, including interest accrued, will be cancelled.

It is important that we have a sustainable student finance system, fair to students and the taxpayer. We will continue to keep the terms of the system under review to ensure this remains the case.