Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Answer of 30 May 2025 to Question 50912 on Students: Loans, what steps her Department takes to help ensure that borrowers are adequately informed about (a) how interest accrues on student loans and (b) the potential impact of making minimum repayments.

When a borrower takes out a student loan, they are provided with the terms and conditions. These clearly set out the repayment thresholds, when a borrower will start repaying, how their repayments will be calculated, how interest is applied, and when the loan term ends. Details around the protections available for borrowers, including the fact that any outstanding balance will be written off at the end of the loan term, are also included. All student loan borrowers must confirm that they have read and understood the terms and conditions prior to signing the loan agreement.

Access to this information up front ensures that prospective students can weigh up the likely overall costs and likely benefits to them of undertaking higher education, alongside the financial cost of repayment across the length of the loan period.

For those who may still be unclear about the long-term commitment of a student loan, there is a range of guidance on student loans available from the Student Loans Company.

Student loan borrowers may make additional, voluntary repayments at any time, if they wish to reduce their loan balance sooner or repay their loan in full. They will need to consider their personal circumstances and the fact that any outstanding loan balance, including interest accrued, will be written off at the end of the loan term. Voluntary repayments cannot be refunded.