Question to the Department for Education:

To ask His Majesty's Government what is preventing the implementation of the recommendation set out in the Independent panel report to the Review of Post-18 Education and Funding, published on 30 May 2019, that no student should repay more than 1.2 times their initial loan in real terms.

Following the review on post-18 education and funding, Plan 5 terms and conditions were introduced for new students in England who started their studies from the academic year 2023/24.

Interest on Plan 5 student loans is charged at the Retail Price Index (RPI) inflation only (currently 3.2%), meaning graduates will not repay more than they borrow in real terms. As an additional borrower protection, interest rates are automatically capped by the prevailing market rate for comparable unsecured personal loans, ensuring borrowers are protected if market conditions change.

It is reasonable to ask those graduates who do benefit financially from higher education to contribute towards the cost of their studies. Borrowers earning below the repayment threshold of £25,000 per year are not required to repay anything. 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.