Autumn Statement: Uni students to repay more on their student loan

University students will have to pay up to £306 more each year by 2020-21, according to George Osborne’s Autumn statement. 

The chancellor announced that the amount graduates have to earn to start repaying their loan will remain at £21,000.  The previous government said that the threshold would increase with average earnings.

The NUS vice president said: For example, if you earn £25,000 and the threshold is £23,000, you repay £180 a year. If the threshold is frozen at £21,000, you pay £360 a year.
“This is yet another betrayal by the government and part of a long list of political measures that shows complete disdain to students and their futures. Freezing the repayment threshold won’t just affect new students but those who started studying from 2012-13, and will have a real impact on the income of graduates, particularly the most disadvantaged and those on lower earnings.

“If the repayment threshold is frozen at £21,000 for five years from 2016, the typical borrower is estimated to repay an extra £2,800.”

Martin Lewis, founder of MoneySavingExpert, described it as “a disgraceful move and a breach of trust by the government that betrays a generation of students”.

Buzz Feed pointed out that the government consulted the public on this move earlier in the year, but 84% of respondents opposed the moved.

Also mentioned in the chancellor’s statement was the scrapping of grants for student nurses. They will be replaced with loans.  Janet Davies of the Royal College of Nursing said “these proposals will saddle future generations of these student nurses with even more debt and financial pressures and unless nurses pay improves, many graduates will never be in a position to pay their loans back.”

By: Toby Gould, Student Voices Editor
Autumn Statement: Uni students to repay more on their student loan Autumn Statement: Uni students to repay more on their student loan Reviewed by Admin on 23:38 Rating: 5

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