Question to the Department for Education:

To ask His Majesty's Government, in the light of the proposal to increase student fee caps in line with forecast inflation in academic years 2026–27 and 2027–28, what estimate they have made of the level of average student debt when students become liable to repay tuition fee loans; and what percentage of those students they expect to pay off those loans in full.

For students starting in the 2024/25 academic year, the department estimates the average loan balance at the point of repayment to be £45,600, including interest accrued during study. This data is available at: https://explore-education-statistics.service.gov.uk/find-statistics/student-loan-forecasts-for-england/2024-25.

Under Plan 5 loan terms, 56% of these borrowers are expected to repay their loans in full and had assumed inflationary fee increases. Figures include balance associated with both maintenance and fee loans.

Borrowers will be liable to repay at a fixed percentage of earnings only when earning above the applicable student loan repayment threshold. Repayments are linked to the earnings, and not the rate of interest or the amount borrowed. Those earning below the student loan repayment threshold repay nothing. Where a borrower does not repay their loan in full by the end of the loan term, the remaining balance is cancelled, with no detriment to the borrower.