Students: Loans
Commons · Question 25240 · Tabled 28 Aug 2026 · Department for Education · Official record
Answered 7 Sep 2026
Question
Asked by Ben Maguire
To ask the Secretary of State for Education, whether her Department has made an estimate of the potential revenue raised by introducing a voluntary discounted settlement scheme for Plan 2 student loan borrowers whose loans are not projected to be repaid i
Answer
Answered by Josh MacAlister, 7 Sep 2026
One of the fundamental principles of student loans is that repayments are income contingent and only due when the borrower is earning over the relevant repayment threshold. Outstanding debt, including interest accrued, is cancelled at the end of the loan ...