Commons Sense

House of Commons · Ministers' Questions

Student Loan Repayments: Inflation

Tuesday 14 November 2023 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Laurence Robertson asked about the impact of inflation on student loan repayments for graduates.
  • The Minister responded that tuition fees are frozen for 2023-24 and 2024-25 to improve affordability for future graduates.
  • The Government aims to reduce inflation to lower interest rates affecting all, including graduates.

Topics (select to filter)

Questions & Answers

Q1 Laurence Robertson Con
Context

The question arises due to concerns about rising inflation affecting the financial burden on graduates repaying their student loans. There is no specific statistic mentioned, but it reflects a broader economic issue.

Question

What assessment has been made of the potential impact of inflation on the ability of graduates to repay student loans?

Answer from Laura Trott

Tuition fees have been frozen for 2023-24 and 2024-25, which will help affordability for future graduates. For new graduates, interest rates will move with the retail prices index but will have nothing added.

Partly answered

Not addressed: The response does not directly address the impact of inflation on the ability to repay student loans.

How: Frozen Tuition Fees, Interest Rates Moving With Retail Prices Index

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Q2 Laurence Robertson Con
Education Economy Housing
Context

The question builds on concerns about the financial strain on graduates due to high interest rates, making it difficult to repay loans while also purchasing property.

Question

I thank the Minister for that response but, of course, interest rates have made matters much more difficult for graduates, who cannot afford to both pay off their student loan and buy their own property. Is there anything further that the Government can do to help graduates, who are struggling to do both? One of the things we could do is raise the threshold at which they start to pay back the loans.

Answer from Laura Trott

I thank my hon. Friend for his question. The most important thing we can do is bear down on inflation, because that will bear down on interest rates, which affect us all. I would also point to the cost of living support that the Department for Education is providing for students. I would be happy to discuss the matter with him further.

Partly answered

Not addressed: The response does not provide specific measures or policy changes to help graduates struggling with student loans and housing.

How: Bearing Down On Inflation, Cost Of Living Support

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