Question to the Department for Education:

To ask the Secretary of State for Education, how much and what proportion of the downward revaluation of the student loan book in the latest outturn reflects (a) revised graduate earnings and repayment assumptions and (b) changes in the discount rate used to value future repayments.

As of 31 March 2025, the fair value of the student loan book was £157.9 billion, representing a £6.9 billion increase on the opening balance of £151.0 billion.

The fair value loss in the 2024/25 financial year was £8.6 billion. Of this, the change in the discount rate brought about a £280 million gain. The residual loss was £6.7 billion, which was impacted by changes in macroeconomic determinants such as the Office for Budget Responsibility’s earnings outlook, which was more pessimistic than in the prior year.