Government policymakers have stopped short of promising to adjust the terms of existing student loans despite public pressure to do so, saying they need to consider “fairness to taxpayers as a whole”.
Appearing in front of the the House of Commons Treasury Select Committee, Lucy Rigby, treasury chief secretary, said there were “a number of things” she would like to change about the student loan system in a “perfect world”.
However, despite prime minister Keir Starmer’s promise to look at making student loans fairer, Rigby said the government had to bear in mind the “overall fiscal position” when considering changes.
“I think the right way to look at it is about fairness to taxpayers as a whole,” she said. She went on to point out that the majority of young people don’t go to university and that other decisions had been taken by the government that would benefit graduates, such as reforms to renter’s rights.
Skills minister Jacqui Smith said there is already a “significant government subsidy” that goes into the student finance system, with 30 per cent of the money loaned to students never repaid on average.
