B

Baroness Smith of Malvern (Lab)

Speaking in the House of Lords on 22 October 2025

Debate

Post-16 Education and Skills Strategy

Contribution

The noble Baroness has identified the very different nature of student loan provision from an ordinary form of borrowing. What a student repays is dependent neither on the size of the debt nor on the interest rate; it is dependent on the student’s level of income once they are working. The noble Baroness can shake her head, but that is the reality of the way the system is designed. Therefore, there is both a student contribution and, in many ways, a taxpayer contribution to ensuring that there is no upfront cost to students going to university. The noble Lord makes an important point that we need to clarify the nature of the student loan system, in order that we do not discourage young people from going to university.

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