Student Loans

Education and Skills written question – answered at on 18 April 2006.

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Photo of Peter Law Peter Law Independent, Blaenau Gwent

To ask the Secretary of State for Education and Skills what assessment she has made of the impact of interest payable on unpaid student loans on the ability of graduates to repay loans.

Photo of Bill Rammell Bill Rammell Minister of State (Lifelong Learning, Further and Higher Education), Department for Education and Skills

Interest is only charged on student loans in line with inflation, which means no borrower pays back more in real terms than the value of the loan they took out. Borrowers repay loans at a fixed percentage of salary once their earnings reach the repayment threshold so fluctuations in the interest rate do not affect the monthly repayment amount.

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Annotations

Ken Brookman
Posted on 22 Apr 2006 11:17 am (Report this annotation)

This informationis provided to students at universities so they SHOULD know these facts. Perhaps little Dai is thinking of getting more education skills and thinks university is the place for him???

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.