Half of graduates could have their student loans written off, admits Government
Thursday 08 November 2012
Half of graduates could have their student loans written off because they will not earn enough to repay them, the Government admitted today.
Students who borrow money to complete their courses will not begin to pay back money until they earn £21,000.
Unpaid loans are written off after 30 years under the coalition's shake-up of university funding.
Universities Minister David Willetts said today: "We estimate that around half of all borrowers will have some part of their loan written off, as payments are contingent on their future income."
An Institute for Fiscal Studies report four months ago said half of graduates would still be repaying loans into their 50s.
But speaking at business, innovation and skills questions in the Commons, Mr Willetts added: "Our reforms are more progressive than the previous system because you only start to repay once you are earning over £21,000.
"The new system helps reduce the deficit, is affordable and sustainable for the Government, while offering protection for those who may not go on to high-paid employment."
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: YouGov final prediction puts No campaign 8 points ahead - but Yes team remains optimistic
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
- 1 Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
- 2 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 3 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
£100 - £120 per day: Randstad Education Chelmsford: English & Media Teacher - ...
£90 - £120 per day: Randstad Education Leicester: Y1 Teacher required for a So...
£90 - £120 per day: Randstad Education Leicester: Long term position for a KS2...
£110 - £130 per day: Randstad Education Reading: English Teachers with QTS nee...