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Students: Loans

Volume 488: debated on Wednesday 25 February 2009

To ask the Secretary of State for Innovation, Universities and Skills if he will make it his policy to suspend student loan repayments for graduates earning less than £30,000 per annum. (258981)

There are no plans to suspend repayments for graduates earning less than £30,000. Repayment terms are already generous, and heavily subsidised by the taxpayer. Borrowers with income-contingent student loans repay at a rate of 9 per cent. of earnings above the repayment threshold of £15,000. This means that, for example, student loan borrower earning £18,000 a year would repay £5.19 per week.

We are committed to maintaining the repayment threshold at £15,000 until 2010, when we will review it.