§ 13. Mr. DavidTo ask the Secretary of State for Education and Skills if he will alter the rules governing the Student Loan Company Ltd so that interest on loans is not charged when a former student is engaged in voluntary work. [176002]
§ Alan JohnsonWe have no plans to remove the interest rate on student loans for graduates doing voluntary work. Student loans are already made on exceptionally favourable terms. There is a real terms zero rate of interest on these loans in line with inflation, as defined by the Retail "Prices Index". Currently, graduates involved with voluntary work who are earning less than £10,000 do not have to make repayments. That amount will rise to £15,000 in April 2005.