Early Repayment Of Student Loans

The Coalition Government's proposals to charge graduates in England for repaying student loans early would be ineffective and costly, according to this CentreForum report. The government is currently consulting on a suggested plan to penalise early repayment, targeting either high earners, large repayments, or both. It wants the penalties to make the system more progressive and says they should not hit those on modest incomes. The new system would come into force from 2012, when tuition fees will increase to up to £9,000 a year. Leadership Briefing 6.03(63)

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