CRASH COURSE IN FEES How a Loan of [Pounds Sterling]24,972 Is Cleared after 25 Years at a Cost of [Pounds Sterling]46,700

The Mail on Sunday (London, England), January 30, 2011 | Go to article overview

CRASH COURSE IN FEES How a Loan of [Pounds Sterling]24,972 Is Cleared after 25 Years at a Cost of [Pounds Sterling]46,700


THE new rules will see tuition fees rise to between [pounds sterling]6,000 and [pounds sterling]9,000 a year, depending on course and institution. These upper limits will increase in line with inflation.

Students can borrow the entire cost of their fees from the Government and can take out loans of at least [pounds sterling]2,763 a year for living costs.

There will also be grants towards living costs - students from families where the household income is below [pounds sterling]25,000 will be eligible to a maximum of [pounds sterling]3,250 a year.

All loans, whether for fees or living costs, are repaid in the same way after university. Money has to be repaid whether a student graduates or not.

Interest on the loans will accrue from day one of the first academic year. But repayments begin only once someone starts work and is earning more than [pounds sterling]21,000 a year. The repayment will be 9p in the pound on all income above [pounds sterling]21,000.

The interest rate on the loan will depend on how much someone earns. While they are still studying or earning less than [pounds sterling]21,000, the outstanding debt will grow in line with the Retail Prices Index. At [pounds sterling]21,000, the interest rate starts to increase. …

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CRASH COURSE IN FEES How a Loan of [Pounds Sterling]24,972 Is Cleared after 25 Years at a Cost of [Pounds Sterling]46,700
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