Graduates could have to repay students loans sooner under new rules

Graduates may need to start paying back their loans if they earn £ 22,000 under government plans to raise around £ 2.5 billion a year.

Currently, graduates do not have to pay off their student loans until they earn £ 27,295 a year.

Under the new plan, which could be reduced to £ 22,000, The Times and Telegraph both report.

The Spiegel earlier this year reported that the government is considering lowering the threshold to £ 25,295.

The proposals currently under discussion mean that most graduates would repay between £ 200 and £ 475 more annually in student loans, according to estimates by the think tank of the Higher Education Policy Institute.

The Treasury Department is expected to argue that the system needs reform as billions of pounds of university debt are never paid back.

Government reforms on student loans and tuition are reported to provide details within weeks.

There is an emerging consensus within No. 10, the Treasury Department and the Department of Education that the salary threshold for student loan repayment should be lowered, The Times said.

Lowering it to £ 25,000 would save the Treasury about £ 1.1 billion for each new academic year, while reducing it to £ 22,000, saving £ 2.7 billion.

The government is also reportedly considering lowering the student loan interest rate, which was a 2019 election manifesto.

In September, the Ministry of Education said it would continue to review the recommendations of the Augar Board of Examiners for Higher Education, “while promoting the quality of standards and pedagogical excellence and ensuring a sustainable and flexible system of student funding”.

You can find more stories from where you live at Near you.

.

Leave a Comment