Written Question·Department for Education·UIN 115756

Students: Loans

Tabled: 24 February 2026

Answered: 26 March 2026

Named Day

Question

David Reed

To ask the Secretary of State for Education, what assessment she has made of the potential impact of effective marginal deduction rates exceeding 50 per cent on Plan 2 student loan borrowers’ labour supply, including decisions on a) overtime, b) hours wor

Answer

Josh MacAlister

Plan 2 loans were designed and implemented by the previous government and, given the inherited fiscal situation, the department is making tough but necessary decisions.Graduates only begin repaying their student loan once earnings exceed the earnings thre...

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