Student loans inquiry launched by Treasury Committee

An influential committee of MPs has announced it will investigate the student loan system and the impact of tuition fees.

The Treasury Committee will scrutinise changes to the student loan system, including the repayment threshold and interest rates.

It will also examine the impact of higher education on the public finances.

The UK's leading universities have welcomed the move.

Nicky Morgan MP, who chairs the Treasury Committee, said: "Student loan debt is projected to be around £160bn within six years, and the government has announced that it will review the whole student finance system. The committee will scrutinise the current system and any future developments closely."

Universities minister Jo Johnson confirmed this week that tuition fees will be frozen at £9,250 next year and the salary repayment threshold for graduates to begin paying back their loans will rise from £21,000 to £25,000.

Prime Minister Theresa May first announced the plans on the eve of the Conservative Party conference.

Tim Bradshaw, acting director of the Russell Group, which represent 24 leading universities, said: "We need a system of student finance that is fair for students, the taxpayer and for universities too.

"The announcement of an increase in the student loan repayment threshold was a positive move that will help recent graduates.

"I have previously called for the interest rate attached to student loans to be looked at again and am pleased that this will be considered by the committee."