Student Loans

I am committed to supporting the aspiration of every young person who wants to go on to higher education, and we must make the student loan system work for students, taxpayers, and universities. I am pleased to see the Government has backed the return of targeted maintenance grants for disadvantaged students on courses aligned to the government’s Industrial Strategy. 

As you will know, student loans work differently to other types of borrowing. Repayments are based on income rather than the amount borrowed. This is to protect graduates on lower earnings and encourage fairness across income levels.  

The Plan 2 Repayment system was introduced under the previous Government, and I agree that this current set up does not work for students or universities. Confusing adjustments to interest rates lead to an unfair burden on students.  

I also feel we need to reassess how we are selling student loans to young people. Too many students are told there is nothing to worry about and are not properly informed when they make the decision to have what is effectively a graduate tax.  

I know the Government keeps the system for loan repayments under continuous review, and the goal is always to ensure fairness. I am pleased to see the Treasury Select Committee has decided to open an inquiry into the current system and is accepting evidence until the 14th of April 2026.  

I encourage everyone affected to follow this link and make sure you have your voice heard. I look forward to the outcome of this much needed review.