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Student loans at 'tipping point' due to miscalculations

The student loans system is at "tipping point" due to Government miscalculations and problems with collecting repayments, a cross-party group of MPs has warned.

The student loans system is at Credit: PA

In a critical new report, the Commons Business Select Committee said that the current system is under threat, and an urgent review is needed to address the issue.

Figures published earlier this year show that the Government's latest estimate - known as the "RAB charge" - is that around 45% of loans taken out under the new system will never be repaid.

Uni funding reforms 'protect those on lower incomes'

Changes to tuition fees will "protect those on lower incomes" who are now applying in "record numbers", according to the Government.

A Business Department spokesman said:

Through these reforms we are protecting those on lower incomes and people from disadvantaged backgrounds are now applying in record numbers.

Private colleges have an important role to play in providing students with an alternative to university.Where standards are not being met we are taking action.

The process to designate courses for student support has been strengthened considerably and where we have found evidence of abuse, we have taken swift and decisive action.

– A business department spokesman

Uni funding system 'more expensive than the old one'

The trebling of tuition fees to £9,000 per year will "cost the public purse more than the old one", a union leader will warn.

Sally Hunt, from the University and College Union, will say the Government had claimed to have settled funding for a generation.

But the reality is that it is now a disastrous, unstable mess.

Despite the tripling of tuition fees, experts now think we are not far away from the point when this new system will actually cost the public purse more than the old one.

Meanwhile, the further education loans system has been completely abandoned for apprenticeships and is running woefully under target for other adults.

All this means funding must be an issue at the general election.

– Sally Hunt
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