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Student loan system should be 'restructured'
Monday, 21 January 2008
The student loan system should be restructured or risk deterring applications from lower-income students, according to a report by London Economics.
The report found that the controversial system introduced by the government is now so complicated it is discouraging prospective students from applying to university, according to the Wessex Scene.
Under the current system universities are free to charge students fees from between nothing and £3 comma 000, with no "means testing", the former system which used to determine fees on parental incomes and related factors, the news provdier noted
Imminent plans to raise the limit on fees above the current £3,070 will lead to even more potential students to opt out, the report claims.
Head of Million+, Les Ebdon, commented that: "This report is a reality check for us all. If widening participation remains a goal, there is a strong argument to streamline future arrangements and for a more holistic approach."
In related news, many graduates working in the public sector are angry that they must repay interest on their student loans at 4.8 per cent while their pay rises are capped at around two per cent.