James Naish

I am so proud to have the University of Nottingham campus in my constituency. I believe that higher education in the UK is one of our greatest assets and also one of our greatest exports, and we must remember that, despite all the concerns about the student loan system. The student loan system is not a good system. It is a complete mess, and it risks undermining public trust in these institutions. It will not surprise Members that I have been contacted by numerous graduates about this issue, who have made some fantastic points about not just interest rates but the impact on women, the impact on social mobility and the psychological impact. I want to leave with the Minister the three questions most commonly asked in my inbox. First, how can successive Governments justify changing repayment thresholds and interest structures when individuals took out loans under materially different expectations? That does not happen with commercial loans. Secondly, if the majority of plan 2 borrowers are projected never to clear their balance, what is the policy rationale for maintaining interest rates above inflation or Government borrowing costs? Finally, what assessment has been made of the impact of current student loan terms on home ownership, pensions and having children, and how on earth does that impact align with our goals on economic growth?