STUDENT LOAN REPAYMENT PROPOSED CHANGES
10 December 2010
The House of Commons has voted for changes to graduate contributions for 2012/13. Under government proposals graduates will not make a contribution towards tuition costs until they are earning at least £21,000, up from the current £15,000.
The repayment will be 9% of income above £21,000, and all outstanding repayments will be written off after 30 years. This means all graduates will pay less per month than they do under the current system. The £21,000 earnings threshold will also be uprated annually in line with earnings from April 2016, when the majority of students who commence a three year degree course in September 2012 will become liable to repay.
We are now waiting for draft regulations to be published to see the full detail of the proposed repayment system.