Jamie Reed – 2015 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Jamie Reed on 2015-10-30.

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the effect of the Government’s proposal to freeze the earnings threshold for plan 2 student loans on the cost of attending university.

Joseph Johnson

Freezing the repayment threshold will not affect the cost of attending university. It will mean that students, once earning, will on average meet a greater share of these costs over their working life through loan repayments, helping ensure the long-term financial sustainability of the system. Lower earning graduates below the repayment threshold will not be affected by the proposed changes.

Estimates of the impact of freezing the repayment thresholds are illustrated in the consultation document, which has been published here:

https://www.gov.uk/government/consultations/freezing-the-student-loan-repayment-threshold

“