§ Mrs. WiseTo ask the Secretary of State for Education and Science if it is his intention to charge interest on student loans in cases where repayment is deferred because of low earnings after graduation.
Mr. JacksonAs was made clear in the White Paper "Top-up Loans for Students" (Cm. 520), the Government's proposals arc for a zero real interest rate on the outstanding balance of the top-up loan; where repayments are deferred because a graduate's income is low, a real interest rate of zero will continue to apply during the period of deferment.