City students welcome university loan revamp
CHANGES in how graduates pay back their tuition fees have been welcomed by university students.
As part of a new government-led shake-up, graduates will no longer pay back their loans until they earn £25,000 a year – up from £21,000.
It will apply for all those who left university from 2012, with the government saying the move will save graduates up to £360 a year.
Any outstanding debt that still remains after 30 years will be written off.
Kathryn Clelland, 22, is a third-year journalism student at the University of Portsmouth and has welcomed the news.
‘It’s quite encouraging that this change has been made,’ she said. ‘It means people won’t be scraping by.
‘It will make people feel more comfortable to aspire to push for better jobs with a higher salary after they leave uni instead of settling for £18,000 or £21,000.’
Graduates earning more than the £25,000 threshold will also benefit with reduced payments compared to before.
All repayments are calculated automatically by employers.