Anger as No 10 reportedly intends to lower student loan repayment threshold
UK government plans to lower the limit on which university graduates will have to repay their student loans, according to The Financial Times – in the news which infuriated Internet users.
The outlet reports that a government minister said “this is the plan” when it comes to lowering the current threshold, which sees workers start repaying loans for their tuition fees when their wages are paid. reached £ 27,295.
However, the FT affirms that there is question of a modification of this figure, which precedes next month’s expense review by Chancellor Rishi Sunak and follows the Augar review in post-18 education and funding from 2019.
In the report, the independent panel chaired by Dr Philip Augar said: “We believe there should be a stronger expectation that student contributions will be paid once a financial benefit is secured. For university-level students, we therefore recommend that the most appropriate threshold be the median income of non-graduates.
“At 2018-19 prices, that would mean lowering the threshold from £ 25,000 to £ 23,000,” they said at the time. “However, the panel expects this change to be implemented … starting in the 2021/22 academic year.”
This recommendation was subsequently responded to in the intermediate conclusion of the review in January this year, in which they said the report “highlights the large and growing taxpayer subsidies in the system of funding higher education students.”
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“It is important that funding systems for student funding remain sustainable and that those who benefit from their higher education make a fair contribution. We intend to freeze the cap on tuition fees in order to offer better value for money to students and to keep the cost of higher education in check.
“It will initially be for one year and further changes to the student funding system will be considered before the next full spending review,” they said.
Although no threshold change has been officially announced by Downing Street, Twitter users have expressed fury at the potential plans:
If the government were to go ahead with the plans, the move would be the latest change to hit compensation packages, after controversial proposals to increase national insurance contributions to fund social care were backed by MPs earlier this month.
Responding to a request for comment, a No 10 official directed us to the comments made by the Prime Minister’s spokesperson on Monday.
“We’ve had the Augar review and we want to review the panel’s recommendations and will respond to them later this year. We have a student loan system that ensures those with the talent and the desire to pursue higher education can do so while ensuring a fair distribution of costs, ”he said.