PARLIAMENTARY DEBATE
Student Loans - 14 September 2026 (Commons/Commons Chamber)

May I join in what you said, Mr Speaker? I am sure that the whole House will want to send our deepest condolences to the Prime Minister and to his wonderful mum Eileen, his brothers Nick and John, all the grandchildren and the whole family on this saddest of days.

The student loans system we inherited is broken and unfair, and some graduates feel the weight of it more strongly. Going to university remains a fantastic opportunity, but I have been very clear that this issue is at the top of my in-tray, and I have been very clear in my views about it.

I associate myself with the comments of the Secretary of State. I am sure that all of us on the Liberal Democrat Benches feel deeply sad for the Prime Minister.

Tuition fees continue to rise, while the plan 2 repayment threshold stays frozen until 2030. If it is frozen until 2031, it will align with the minimum wage, leaving students facing higher premiums for up to 40 years. Students from disadvantaged backgrounds are hit by sky-high rents and living costs and face a brutal job market. Young constituents tell me that they cannot trust the fees system when a change of Government can mean a change to the terms of their loans. Will the Secretary of State commit to uprating the thresholds, restoring maintenance grants and creating an independent watchdog so that Governments cannot keep moving the goalposts?

The hon. Lady has put that really well. I reassure her that we absolutely keep these things under review. I have said that this issue is at the top of my in-tray, and that remains the case. I am acutely aware of the cost of living pressures that many graduates in their 20s and early 30s are under, particularly those on plan 2, and that is affecting their decisions about work and life. That is why I will continue to push at this issue, and I hope to have more to say soon.

May I, too, pass on my condolences to the Prime Minister and his family?

I declare that I am a plan 2 borrower, and I know from first-hand experience how unclear the loans were at the time. Will my right hon. Friend say a little more about how the Government are clearing up the guidance given to borrowers? How does she wish to overhaul the Student Loans Company?

I thank my hon. Friend for his question and for all his campaigning on this issue, which I have followed closely. He is absolutely right, and in response to the excellent report of the Treasury Committee, we have committed to much clearer guidance for students before they make decisions about going to university, so that they can be much clearer about how the student loan system will work and possibly affect them in future. That is a really important piece of work. We have also capped the maximum interest rates this year, and we are reintroducing maintenance grants.

I associate myself with the Secretary of State’s remarks regarding the Prime Minister’s father.

Despite the Secretary of State previously calling the student loan system “egregious” and saying that reviewing that system was a top priority—she has just said that it is at the top of her in-tray—the Treasury’s response to the Treasury Committee rejected a series of recommendations that would have alleviated some of the burden on those on plan 2 student loans. What exactly is the Secretary of State’s plan to fix the student loan system?

As I have said, I am determined that we get these things right. Two things can be true at the same time: I feel the system is unfair and in need of reform, but we also have to put that in the context of the wider public finances and all the pressures and priorities that fall on them. However, it is slightly audacious of the Conservatives to raise this issue, given that they introduced the plan 2 system and froze the threshold four times when they were in government—they are not independent campaigners on this issue today. It now falls in my lap to deal with this issue, and I will do so, unlike the Conservative party.