Committee publication · Correspondence · 13 May 2026
Correspondence from Mary Kelly Foy MP on student loans, dated 15 April 2026
From: Treasury Committee
Summary
Mary Kelly Foy MP urges the Treasury Committee to consider evidence from Safety Net HE regarding maintenance loan eligibility for estranged students and care-leavers. She highlights that these groups face year-round funding needs identical to long-course students but are ineligible for extended maintenance loans, creating financial barriers that increase dropout risk and reduce access to the graduate premium.
Key findings
- Estranged students and care-leavers are ineligible for 'long courses loans' despite facing equivalent year-round cost burdens as students on courses exceeding 30 weeks and 3 days
- These groups experience additional structural barriers including start-up costs and costly private guarantor services, compounding financial stress
- Higher financial stress and excess paid work among estranged students and care-leavers correlates with lower completion rates and reduced achievement of 2.1 or above qualifications
- The frozen repayment threshold will disproportionately impact estranged students and care-leavers due to reduced access to the graduate premium
Tone
ProceduralTopics
student-financehigher-educationwelfare-supportsocial-equity
Key actors
Mary Kelly Foy MP, Dame Meg Hillier, Safety Net HE, Treasury Select Committee
Notable line
“Estranged students and care-leavers are ineligible for this additional loan, despite facing the same year-round cost burden …”
Key Quotes
“Estranged students and care-leavers are ineligible for this additional loan, despite facing the same year-round cost burden, on top of structural barriers such as start-up costs and costly private guarantor services.”
“This student group reports markedly higher levels of financial stress, with excess paid work the norm, which we know impacts the ability of students to achieve a 2.1 or above and/or to simply complete their course.”
“… the frozen repayment threshold will disproportionately impact this group”
Source · parliament.uk record ↗