England to Clarify Student Loan Terms as Ministers Keep £29,385 Repayment Freeze Under Review
Updated
Updated · bbc.co.uk · Sep 12
England to Clarify Student Loan Terms as Ministers Keep £29,385 Repayment Freeze Under Review
3 articles · Updated · bbc.co.uk · Sep 12
Summary
University applicants in England will get clearer warnings that student loan repayment rules can change and that career choices can sharply alter how much they repay.
The move follows an inquiry that said loans had been mis-sold to teenagers after officials compared repayments to £30-a-month phone contracts and downplayed the language of debt.
Ministers accepted only part of MPs' recommendations, refusing to drop RPI-linked interest for Plan 2 loans or treat promotional material like commercial lending under FCA-style standards.
They also declined to say whether they will reverse the three-year freeze of the £29,385 repayment threshold, a policy critics say makes graduates repay sooner and more.
Campaigners, MPs and Treasury Committee chair Meg Hillier said clearer information helps future students but leaves existing Plan 2 borrowers facing punitive terms ahead of the autumn Budget.