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Sale of Student Loans Bill

I beg to move, That the Bill be now read a Second time. The Bill concerns the prudent management of one of the Government’s public assets, the student loan book. Before I deal with its provisions, I will briefly explain the context and why the Bill is being introduced now. The Government strongly believe that talent and hard work, not social background or where a person went to school, should determine success in life. We believe that no one should be held back from realising his or her potential at university because of fears of financial hardship. That is why we have been systematically breaking down the financial barriers to higher education. First, we changed the nature of student loans, linking repayments directly to graduate earnings, and started collection through straightforward payroll deduction alongside income tax and national insurance once the graduate is in work and earning. Secondly, no home full-time undergraduate studying for their first degree has to pay tuition fees before they study because there are now loans for fees. Thirdly, we have reintroduced non-repayable maintenance grants for students from low-income backgrounds, and last July my right hon. Friend the Secretary of State announced a significantly enhanced new financial support package for students, under which from next year two thirds of students will be eligible for non-repayable grants. In addition, we have ensured that universities are paying out non-repayable bursaries. Fourthly, the package that we announced for next year offers a guarantee to those in receipt of the educational maintenance allowance that if they are receiving it at the age of 16, they will be guaranteed the amount of money they will get in student financial support when they go to university. We are also introducing for the first time the option of a loan repayment holiday of up to five years to allow flexibility and choice in repayment.