Valerie raises the increase in Student Debt at BIS Questions

On Thursday 26 March 2015 Valerie raised the increase in Student Debt at Business, Innovation and Skills Questions.
Valerie Vaz MP said:

“I asked the Secretary of State for Business, Innovation and Skills what recent estimate he has made of the average level of indebtedness of people who have taken out student loans. Young people will be leaving university with unsecured debt of over £43,000. This will place an intolerable strain on middle income families.”

“The Minister for Universities, Science and Cities did not address the increased debt students are being placed under following the Government’s tripling of tuition fees. The Government’s tuition fees reforms also increase the costs for the taxpayer. Figures from the Office for Budget Responsibility show the amount written off will jump from £2bn in 2044-45 for those whose loans were capped at £3,000, to £20bn in 2048-49 for those on the new system, capped at £9,000.”

“The current system is putting unacceptable levels of debt on to young people and proving expensive to the taxpayer, because so much of student loans is written off. Reducing tuition fees will reduce the burden put on students and save the taxpayer £40bn by 2030.”