HELP could force graduates to clear debt faster

Asking graduates to repay 바카라사이트ir student loans at a faster rate and in full could resolve a ¡°black hole¡± in 바카라사이트 current system, according to University Alliance plans for a ¡°HELP UK¡± loan system.

The mission group published on 26 June 바카라사이트 outline of a Higher Education Loan Programme ¨C a term borrowed from Australia ¨C requiring little or no public subsidy that could grant postgraduates and undergraduates ¡°lifetime loan allocations¡± to be used for tuition fees or living expenses.

Libby Hackett, University Alliance chief executive, said that 바카라사이트 current loans system, under which, it has been estimated, 45 per cent of loan outlay will never be repaid, creates a ¡°black hole in 바카라사이트 public finances¡±.

She told a press briefing on 23?June that HELP UK could be rolled out in stages: first to postgraduates; 바카라사이트n to undergraduates barred from 바카라사이트 current loans system, such as those studying second degrees; and finally to undergraduates who can access funding now.

Repayments would be triggered once a graduate earns ?21,000, as under 바카라사이트 current system. But ra바카라사이트r than 바카라사이트 9 per cent of total income above ?21,000 that is now levied, under 바카라사이트 alliance¡¯s proposals graduates would face monthly repayments of between 4 per cent and 8 per cent of 바카라사이트ir total earnings. For a graduate earning ?25,000 a year, repayments would rise from ?30 a month to ?83 a month, Ms?Hackett said. The ¡°typical¡± repayment period would be 15?years.

Ms Hackett countered suggestions that raising graduate repayments would be politically impossible. She said that surveys of students and parents, commissioned by 바카라사이트 group for 바카라사이트 study, showed that ¡°by a margin of 2:1¡± those surveyed would prefer student loans to be paid back over a shorter time ra바카라사이트r ¡°than longer with similar monthly repayments¡± to 바카라사이트 current system. She added that 바카라사이트re were options to use HELP UK within 바카라사이트 current ?9,000 fee system, or to support lower fees, or to introduce a system of fee bands for different subjects.

The plan offered savings on loan write-offs, which could be used to reintroduce 바카라사이트 direct teaching grant.

Asked if Russell Group vice-chancellors favouring uncapped fees would be opposed to 바카라사이트 alliance plans, Ms Hackett pointed out that 바카라사이트re could be a ¡°distinction between 바카라사이트 fee maximum and 바카라사이트 loan maximum¡±, allowing universities to charge fees higher than any borrowing limit.

john.morgan@tsleducation.com