Commons Sense

House of Commons · Ministers' Questions

Student and Graduate Finance: Cost of Living

Monday 31 January 2022 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • Government has frozen maximum tuition fees for five years, saving a typical full-time student over 3,000 in fee loans.
  • Median non-graduate salaries are at 25,000, and the system aims to be fair and sustainable for taxpayers who do not attend university.
  • Student loans do not affect mortgage applications, according to the government.

Topics (select to filter)

Questions & Answers

Q1 Patricia Gibson SNP
Context

The cost of living crisis is impacting students and graduates heavily, prompting concerns about the adequacy of current financial support.

Question

What recent assessment has been made regarding the adequacy of student and graduate finance given the high costs of living?

Answer from Michelle Donelan

We have frozen maximum tuition fees for the fifth year, saving a typical full-time student over £3,000 in fee loans. Grants and loans increased by 3.1% this academic year with another 2.3% increase planned.

Partly answered

Not addressed: Did not directly address cost of living crisis impact on students and graduates specifically

How: Frozen Fees, Increase In Grants

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Q2 Marion Fellows SNP
Education Economy Employment
Context

High tuition fees have led to significant debt among English students compared to Scottish peers, compounded by the freezing of the loan repayment threshold and national insurance hike.

Question

Given high tuition fees and frozen loan repayment thresholds, how does the Government plan to support students and graduates during this cost-of-living crisis?

Answer from Michelle Donelan

Fees have been frozen for five years, saving £3,000 per student. Median non-graduate salaries are at £25,000; the system aims to be fair and sustainable for taxpayers who do not attend university.

Partly answered

Not addressed: Did not provide specific plans or actions addressing cost-of-living crisis impact on students and graduates

How: Frozen Fees, Sustainable System

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Q3 Patricia Gibson SNP
Education Taxation
Context

The Government's promise to freeze the student loan repayment threshold was broken, affecting graduates with high marginal tax rates due to the national insurance hike.

Question

Why does the Minister think it is fair that graduates earning over £27,000 face a 42.25% marginal tax rate, given the break of the promise on freezing loan repayment thresholds?

Answer from Michelle Donelan

Only a quarter of those taking out loans will fully repay them, reflecting different terms from commercial loans where payments adjust if someone loses their job or salary reduces.

Partly answered

Not addressed: Did not address fairness and justice concerns about the current repayment system

How: Quarter Of Loan Takers, Payment Adjustments

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Q4 David Evennett Con
Education
Context

Universities have been providing remote learning due to health measures, leading some to question the value for money students are receiving.

Question

Now that plan B has ended, should universities welcome back students to lecture halls or provide refunds given poor education quality through remote learning?

Answer from Michelle Donelan

Agree that online learning is not a cost-cutting measure; universities must be transparent about what students can expect. Calling vice-chancellors if concerns arise over face-to-face provision.

Answered

Not addressed: null

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Q5 Barry Sheerman Lab
Education Economy Employment
Context

Many students struggle to repay loans, leading some to be refused mortgages due to their debt. This prompts calls for the Government to address the situation.

Question

How does the Minister plan to handle the current issues with student finance affecting mortgage eligibility and overall financial stability of graduates?

Answer from Michelle Donelan

Contrary to assertions, student loans do not affect mortgage applications. Committed to a sustainable funding model supporting quality education and addressing skills gaps.

Partly answered

Not addressed: Did not address specific plans or actions regarding mortgage eligibility impact of student debt

How: Student Loans Not Affecting Mortgages, Sustainable Funding

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