Government promises
review of student loans repayment system
The government has vowed to undertake a revamp of the current
student loans repayment system.
From April 2020, graduates will only be required to
start paying back their loan if they earn over £26,575 per year.
In a move designed to modernise the system, the
government intends to introduce a new online repayment service, which will
provide graduates with ‘up-to-date balance information’.
Graduates are also being urged to switch from salary
deductions to direct debit towards the end of their loan in order to prevent them
from over-paying.
Commenting on the review, Chris Skidmore, Universities
Minister, said: ‘With more and more people enjoying the benefits of a
university education, it’s only right that graduates have easy access to the
information they need about repaying their student loan.
‘I urge all graduates to use this new service and to
join the direct debit scheme as they approach the end of their loan to ensure a
smooth end and not repay more than they should.’