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Students: Loans

Answer

The government is taking decisive action to better support disadvantaged students, make things fairer for graduates, and create a more flexible, responsive post-16 education system through the introduction of the Lifelong Learning Entitlement in January 2027.

Since 2024, we have raised the Plan 2 repayment threshold twice, protected borrowers from the risk of inflation shocks by capping interest rates on Plan 2 and Plan 3 loans at 6% for the 2026/27 academic year, and future-proofed maintenance loans by committing to increase them every year in-line with forecast inflation. Further, we are making care leavers automatically eligible for the maximum rate of maintenance loan, and we will be reintroducing targeted, means-tested maintenance grants in the2028/29 academic year, funded by a levy on providers for international students.

We will continue to look for ways to make the system fairer for students, graduates and taxpayers in a financially sustainable way.

Secondary information

Type

Written question

Reference

HL2576

Session

2026-27

Grouped for answer

Yes

Subjects

Loans Reform Repayments Students

Link

View this Written question on www.parliament.uk