The government has described the student loans system as unfair and broken. Governments both past and present have frozen the repayment thresholds of student loans. A bank would not be allowed to retrospectively change terms and conditions. The Government shouldn’t do it either.
The government must reverse the repayment threshold freeze in the Autumn Budget. We need to maintain students’ trust in government. And we need to honour the terms and conditions under which those loans were sold to students.
Students today could be paying as much as 95% of the cost of their higher education. In the long term, the government should return the balance between the individual and the state to a 50:50 split.
Earlier this week, the Treasury Select Committee launched our Student Loans: Broken and Unfair? I talked about it on LBC – you can listen at 03.47.06