Review of the student loan system

That this House notes with concern the cumulative impact of successive changes to the terms and conditions of student loans in England including the decision to freeze loan repayment thresholds and the introduction of new loans with different repayment thresholds and write off periods; further notes that successive Governments have altered the terms and conditions of existing loans since their introduction, undermining confidence in the stability of the system; recognises that graduates are facing sustained cost-of-living pressures, including rising housing costs and childcare expenses, making it increasingly difficult to get on the housing ladder or achieve financial security; observes that the current structure of RPI-linked interest rates frequently results in loan balances growing faster than borrowers are able to repay them; believes that this disproportionately affects middle-income earners and represents a significant barrier to social mobility; highlights the impact on public sector workers, including doctors, nurses and teachers, who may face disincentives to take on additional hours where higher earnings attract greater repayment and interest burdens; also notes that in a commercial lending environment the Financial Conduct Authority would not ordinarily permit lenders to alter repayment terms retrospectively in this manner; and calls on the Government to restore fairness by uprating repayment thresholds and reviewing the interest rate structure to ensure that student loans remain affordable, proportionate, and supportive of aspiration rather than a long-term financial constraint.