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Graduates face ‘stealth tax’ that puts them on student loans until they’re SIXTY

GRADUATES face paying back their student loans until they are at SIXTIES under the Government’s new scheme.

University graduates – who typically have £45,000 in debt – are expected to start paying back once they start earning £25,000 a year.

Graduates face paying back their student loans until they turn sixty under new Government plans

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Graduates face paying back their student loans until they turn sixty under new Government plansCredit: Alamy

And they will have to wait 40 years until the debt is written off, not 30, the sources said Time.

The current threshold of £27,295 – £2,000 more than the suggested figure – means many students will have to start repaying their loans sooner.

But ministers will soften the pill by tying student loan rates to inflation.

Education Secretary Michelle Donelan insisted the changes were “absolutely not” intended to discourage degree holders.

But the Education Policy Institute warned the move would hit disadvantaged people.

The plans are believed to be part of the Government’s response to the first major government-requested review of higher education since 1963.

The reimbursement changes are expected to apply only to recent graduates, from the 2024-25 school year.

Tuition fees are expected to be frozen at £9,250, after rising to £9,000 in 2012.

Vice-chancellors say this means real income from tuition will fall by a third by 2024, when the changes could come into effect.

It comes after a report published by the Library of Commons last December said the value of outstanding debts at the end of March last year was £160bn.

It added: “The government hopes that only 25% of current full-time university students who take out loans will repay them in full.”

The Department of Education (DfE) proposals, which will be submitted to consultations, would include new minimum entry requirements for universities to ensure students “are not pushed into higher education before they are in a state of higher education.” ready”.

Alistair Jarvis, chief executive of Universities UK, which represents vice-chancellors, said: “The government should expand opportunity, not limit it.

“[It is] It’s crazy to shrink colleges and limit aspirations by reducing the number of places people go to college.

“The government should ensure that anyone with the potential to succeed at university has the opportunity to do so.”

https://www.thesun.co.uk/news/17751984/graduates-face-stealth-tax-pay-back-loans/ Graduates face ‘stealth tax’ that puts them on student loans until they’re SIXTY

Bobby Allyn

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