Student loans will now take 40 years to repay


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A stealth tax on students in England, said Labour of the government’s planned reforms of student financing, and that is indeed what it amounts to.

A complicated one, for sure, with some sugar to help the medicine go down. Annual fees will be frozen at £9,250 for another two years and student loan interest rates are being cut to match the retail price index (RPI).

The flip side is that school leavers who go on to higher education will be making repayments for up to 40 years, rather than a maximum of 30 at present. The income level at which they start will also be reduced from £27,295 to £25,000.