Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the appropriateness of maintaining student loan repayment thresholds.

These loans were designed and implemented by previous governments, and the department is having to make hard choices to balance taxpayer and borrower interests to ensure that the student finance system remains sustainable.

Unlike commercial loans, student loan repayments are linked to income, not to the amount borrowed or interest applied. If a borrower is earning above the repayment threshold and their income stays the same, then their repayments will remain the same.

Repayments are made at a constant rate of 9% above the earnings threshold, and the 9% rate strikes a balance between affordability for graduates and fairness to taxpayers. This is a deliberate government investment in students and the economy.

Those earning below the earnings threshold do not make repayments. Any outstanding loan including interest built up, is cancelled at the end of the loan term with no detriment to the borrower, and debt is never passed on to family members or descendants.