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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
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