Student loan consultation responses
02 December 2015
Following announcements within the Spending Review and Autumn Statement, the Government has published its consultation responses on freezing the student loan repayment threshold and postgraduate study student loans and other support.
Freezing the student loan repayment threshold
During the summer the Government consulted on two options for student loan repayment thresholds: to keep the loan repayment threshold at £21,000 for all students from April 2016, or to freeze it at the level it would have reached in 2020 only for new borrowers starting in academic year 2016-7 and repaying from April 2020.
The Government has chosen their preferred option and will freeze the student loan repayment threshold for Plan 2 graduates for five years from April 2016. The CIPP ran a survey to inform our response to the consultation and 80.3% of respondents were in favour of this option.
Please note that the next meeting of the Collection of Student Loans Consultation Forum will be held on Monday 14 December. We fully expect that the freezing of the Plan 2 threshold will be discussed and we will let you know if we are given any more information about this. If you have any other questions or issues that you would like the CIPP Policy Team to raise on your behalf please email details to policy before Monday 7 December.
Postgraduate study: student loans and other support
Financial support for higher education will be increased substantially to enable people to study for a degree. The Government will lift the age cap on new loans to postgraduates from 2016-17 so they are available to all those under 60.
Following a sharp decline in part-time students since 2008, the Government will introduce new part-time maintenance loans from 2018-19 to support the cost of living while studying. The Government expects 150,000 part-time students could benefit each year by the end of the Parliament.
For all STEM subjects (science, technology, engineering and mathematics), tuition loans will be extended to students wishing to do a second degree from 2017-18.
You can read the CIPP summary of the Spending Review and Autumn Statement 2015 through this news link.