Student Loans
New IFS research today shows that the average debt a student has on graduating university has risen to over £50,000. For the students coming from the lowest income families, this can be as much as £57,000 with £5,800 of that purely from interest accrued since starting their courses.
Under the Conservative government, student loans have been increased from £3,000 per year to £9,000 per year. Maintenance grants for low-income students have been replaced by extra loan allowance. Student loans are set to increase in line with inflation (or by £250 per year) for the foreseeable future, starting in September, regardless of teaching quality.
The IFS sees only two winners from the current system, and it’s certainly not the students who benefit. Students earning the minimum amount of repayments - which has been frozen at £21,000 for several years - are estimated to be 30% worse off than their equivalents under the old loan system. No, the only beneficiaries are the universities (although not 90% of their employees) and the government.
So what do you think, voters? How can we, as a voting force, work together to end this stranglehold the UK government has on us? We want to hear your ideas to fix what is becoming a very, very broken system, one which stifles recent graduates and the UK economy as a whole.
Young Voters UK is today officially committing to fighting Conservative policies on student finance.
