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Tories to offer graduate loan discount?
Tuesday, 06 October 2009
Life after graduation
The Conservatives have announced that university leavers who pay off their graduate loans early will receive a ten per cent discount if the party takes power.
Former students in graduate jobs paying more than £15,000 a year currently get any owed fees automatically taken out of their account.
However, they could end up paying less if early payments over £500 are made to clear the debt.
David Willetts, shadow universities secretary, announced the deal would go towards the £300 million funding needed to provide more university places next year.
He said: "Our plan to give graduates a discount for repaying loans ahead of schedule will give thousands more young people the opportunity to go to university, rather than staying on the dole."
The Student Loan Company recently reset its rates to minus 0.4 per cent to reflect Retail Price Index deflation, allowing graduates to enjoy the debt being paid off for them.