Great Britain Government consider lowering the limit to which university graduates will have to reimburse their student loans, according to The Financial Times – in the news which infuriated Internet users.
The outlet reports that a government minister said “this is the plan” when it comes to lowering the current threshold, which sees workers start repaying loans for their tuition fees when their wages are paid. reached £ 27,295.
However, the FT claims that there is talk of a modification of this figure, which precedes next month’s expense review by chancellor Rishi sunak and follows the Augar review in post-18 education and funding from 2019.
In the report, the independent panel chaired by Dr Philip Augar said: “We believe there should be a stronger expectation that student contributions will be paid once a financial benefit is secured. For university-level students, we therefore recommend that the most appropriate threshold be the median income of non-graduates.
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“At 2018-19 prices, that would mean lowering the threshold from £ 25,000 to £ 23,000,” they said at the time. “However, the panel expects this change to be implemented … starting in the 2021/22 academic year.”
This recommendation was later responded to in the intermediate conclusion of the review in January this year, in which they said the report “highlights the large and growing taxpayer subsidies in the system of funding higher education students.”
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“It is important that funding systems for student funding remain sustainable and that those who benefit from their higher education make a fair contribution. We intend to freeze the cap on tuition fees in order to offer better value for money to students and to keep the cost of higher education in check.
“It will initially be for one year and further changes to the student funding system will be considered before the next full spending review,” they said.
While no threshold change has been officially announced by Downing Street, Twitter users have expressed fury at the potential plans:
This will be the third retrospective change to the “contract” I had with the student loan company.
-Aaron Bastani (@AaronBastani) September 26, 2021
someone please leave. 10 know that there are currently no opportunities for those leaving lower education outside of college and let’s see how the world would be without my ‘sweet’ design degree because it would be a very different place
– abs (@abigayall) September 26, 2021
What a surprise. Not. As if starting working life with debt over £ 27,000 was not enough, the Tories are now doing their best to limit opportunities, restrict mobility and lower aspirations. Is this how they hope to solve the shortages of truck drivers, poultry processors and vegetable pickers?
– Simon Reynolds (@Wintonfellow) September 26, 2021
This will affect normal students from modest backgrounds, not students from privileged backgrounds who will not have loans. How does it go up ??
– Harmonica #FBPA #FBPE #GTTO (@NigelBenar) September 26, 2021
This government really does not like young people, does it?
– Marged Sosban Fach #FBPA 💙🏴🇬🇧🇪🇺 (@Marged_SFach) September 26, 2021
They really have something for young people
– Michael Way (@ 8twisden) September 26, 2021
A little crazy how the terms of a contract that I signed almost ten years ago have been changed so often since… 🙃 https://t.co/ja83PKCe5p
– Geri Scott (@Geri_E_L_Scott) September 27, 2021
Whatever you think of tuition fees and whether students are getting their money’s worth, we can certainly all agree that retroactively changing the terms of a contract to squeeze more money out of a cohort that is already suffering from low rates. exorbitant interest is politically reprehensible. https://t.co/Zu63nbOzJP
– Rachel Cunliffe (@RMCunliffe) September 27, 2021
NUS is totally opposed to any reduction in the repayment threshold, “the injustice is just mind boggling” – our VP SE Hillary Gyebi-Ababio is speaking out for students and graduates in the Financial Times this morning ⬇️ https://t.co/JJOAnNcJtM
– NUS UK #NewVisionForEducation (@nusuk) September 27, 2021
Another attack on young people to finance the mistakes of a helpless government. https://t.co/wh5duSIhE8
– Kieran Galpin (he / they) 🏳️🌈 (@ kierangalpin2) September 26, 2021
Students affected by covid changes in their teaching (i.e. almost no face-to-face teaching) now face retrospective changes in their loan terms. What a really insulting way to scratch a bit (and make no mistake, it’s a * very * small) back https://t.co/QzGkxLTy89
– Hannah Fearn (@hannahfearn) September 27, 2021
I can only conclude that a crack team of HMT officials has been assembled and tasked with finding innovative ways to raise the cost of living. https://t.co/5gtvrmECbr
– Duncan Weldon (@DuncanWeldon) September 26, 2021
Obscene. Effectively the war of generations: punishing the young to finance the old. https://t.co/N5MngDW0Wx
– Ian Dunt (@IanDunt) September 26, 2021
latest cost of living crisis:
– the government plans to reduce the income threshold at which graduates start repaying their student loans
– with the aim of saving Treasury money and pushing more young people towards cheaper vocational training.https://t.co/AJNfLqehoa
– Jim Pickard (@PickardJE) September 26, 2021
But it is normal that future graduates pay very high marginal tax rates,
because you will have the deep satisfaction of knowing that you are keeping the baby boomer tax rates lower https://t.co/3XRLLGj06v
– Chris Giles (@ChrisGiles_) September 26, 2021
“Practically indistinguishable from a tax hike targeted only at young workers”
Surprise Surprise. https://t.co/nscw61mjzp
– Stephen McGann💙 (@StephenMcGann) September 26, 2021
No, I’m sorry, that doesn’t happen. No nation state can prosper by cutting down its young workforce until the glitches squeak. It’s grotesque. https://t.co/F2QQu0czB6
– Glen O’Hara (@ gsoh31) September 27, 2021
It is a appalling and unwarranted assault on young people (and students of all ages), betrayal and breach of contract between students and the government. Absolutely shameful. Imagine if the Tories cut the state pension by £ 800 a year? https://t.co/qApH6jUtWJ
– Tim Farron (@timfarron) September 26, 2021
Sunak plans to lower the threshold at which students start repaying their loans.
As I said before, this is a deeply anti-youth government. https://t.co/FQ2PNGhlHa
– Naomi Smith (@pimlicat) September 27, 2021
If the government were to go ahead with the plans, the move would be the latest change to hit compensation packages, after controversial proposals to increase national insurance contributions to fund social care were backed by MPs earlier this month.
Responding to a request for comment, a No 10 official directed us to the comments made by the Prime Minister’s spokesperson on Monday.
“We have had the Augar review and we want to review the recommendations of the expert panel and we will respond to them later this year. We have a student loan system that ensures that those with the talent and the desire to pursue higher education can do so while ensuring a fair distribution of costs, ”he said.
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