Student loans system 'at tipping point', MPs warn

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

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

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Govt to take student loan recommendations 'seriously'

The Department for Business has welcomed an MPs' report that claims the student loans system is "at tipping point" due to Government miscalculations, saying it will take the recommendations "seriously".

A spokeswoman said: "The costs of the loan system are based on projections of graduate repayments over the next 35 years. These projections will continue to fluctuate due to numerous macroeconomic variables, and present no immediate pressure on the system.

An MPs' report that claims the student loans system is "at tipping point" due to Government miscalculations. Credit: Johnny Green/PA Archive

"The Government is committed to ensuring that the taxpayer is receiving value for money.

"This is why we are continuing to work with the Student Loans Company on improving best practice and have already dramatically tightened the regime for recouping repayments from graduates both domestically and overseas."

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