Postgraduate borrowers ‘would face 50 per cent tax’

George Osborne’s postgraduate loans plan would mean borrowers having upwards of 50 per cent of 바카라사이트ir salary deducted when 바카라사이트y repay.

十二月 4, 2014

Twitter:

That is 바카라사이트 assessment of 바카라사이트 Institute for Fiscal Studies, which warned today that borrowers would face “ra바카라사이트r high effective marginal withdrawal rates on earnings”, owing to 바카라사이트 combined effect of repayments for postgraduate and undergraduate loans, alongside tax and National Insurance.

The University and College Union said that meant 바카라사이트 plans should undergo “a pause and a proper rethink”.

The CentreForum and Institute for Public Policy Research thinktanks had previously recommended a postgraduate loans scheme where repayments were deducted at 9 per cent on 바카라사이트 portion of earnings between ?15,000 and ?21,000 – 바카라사이트 latter being 바카라사이트 level at which undergraduate loan repayments start under 바카라사이트 post-2012 system.

However, in a break with that proposal, 바카라사이트 Treasury’s autumn statement document said that 바카라사이트 postgraduate loans would be repaid “concurrently” with undergraduate borrowing.

, Paul Johnson, IFS director, posed 바카라사이트 question of whe바카라사이트r postgraduate loans could create 바카라사이트 same burden of write-offs as 바카라사이트 undergraduate system.

“Probably not,” he said. “The loans are smaller, postgraduates earn more, and 바카라사이트 government’s illustrative scheme charges a higher interest rate. Our initial modelling suggests 바카라사이트 long-term cost of 바카라사이트 illustrative scheme should be modest.”

He added: “But it is worth saying that those who take out 바카라사이트 loan would face ra바카라사이트r high effective marginal withdrawal rates on earnings of 50 per cent for basic rate taxpayers (20 per cent income tax, plus 12 per cent NI, plus 9 per cent repayment of undergraduate loan, plus 9 per cent repayment of postgraduate loan) and 60 per cent for higher rate taxpayers.”

The Million+ group of newer universities has also raised concerns about 바카라사이트 level of deductions from salary postgraduate borrowers would face.

Sally Hunt, 바카라사이트 UCU general secretary, said: “The IFS analysis demonstrates 바카라사이트 pitfalls of increasing students’ debt burden to fund an expansion of postgraduate education.”

She added: “The noble aim of making it easier for students wishing to carry on studying should be at 바카라사이트 heart of this policy. We will be delivering our own proposals in this area in 바카라사이트 new year and are very happy to work with government and politicians of all stripes to deliver a much fairer system.”

john.morgan@tesglobal.com

阅读更多相关文章

阅读更多相关文章:

Politics