September 2011

Think Tank Dismisses Coalition’s Early Repayment Charge Plans

Government proposals to transform how student loans are repaid have been criticised by thinktank CentreForum for being ineffective and costly. Government is looking for a “more progressive” mechanism for repayment whereby those on higher incomes will be subject to a higher rate of interest.  However, it has expressed concern that allowing early repayment would effectively enable those on higher incomes to ‘buy themselves out’ of this mechanism and has proposed levies on payments over a certain amount to stop it happening.