Question to the Department for Education:

To ask the Secretary of State for Education, if she will make it her policy to remove interest rates on student loans.

Student loans are subject to interest to ensure that those who can afford to do so contribute to the full cost of their degree. To consider both students and taxpayers, and ensure the real value of the loans over the repayment term, interest rates are linked to inflation.

Interest rates do not impact monthly repayments made by student loan borrowers. Student loan repayments are based on a borrower’s monthly or weekly income, not the interest rate or the amount borrowed. Regular repayments are based on a fixed percentage of earnings above the applicable student loan repayment threshold.

No repayments are made for earnings below the relevant student loan repayment threshold. For lower earners who will not repay much of their loan, any outstanding debt, including interest built up, is cancelled after the loan term ends or in case of death or disability, at no detriment to the borrower.