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Public Doubts University Value as Student Loan Inquiry Commences
Third of people say uni degree not worth it, as student loan inquiry begins
Image: The Bbc
An inquiry into England's student loan system has begun, revealing that a third of the public believes a university degree is not worth the investment. The National Union of Students is advocating for changes to repayment thresholds and interest rates amid growing concerns over student debt.
- 0134% of respondents in a recent survey believe a university degree is not worth the time and money, a significant increase from 14% in 2005.
- 02The repayment threshold for graduates will be frozen at £29,385 from April 2027, prompting concerns about early repayments.
- 03More than 50,000 individuals have submitted evidence to the inquiry, highlighting a lack of understanding of loan terms among graduates.
- 04The government has capped interest rates on Plan 2 loans at 6% and argues that the current system protects lower-earning graduates.
- 05Graduates express frustration over accumulating debt, with some delaying major life decisions due to financial pressures.
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As a parliamentary inquiry into the student loan system in England begins, new research indicates that 34% of the public believes a university degree is not worth the investment, a rise from 14% in 2005. The inquiry, driven by concerns from the National Union of Students (NUS) and other groups, will address issues such as the repayment threshold and interest rates. Currently, graduates repay 9% of their income over a threshold, which will be frozen at £29,385 from April 2027. Many graduates, particularly those with Plan 2 loans taken out between 2012 and 2023, report increasing debt levels, with one graduate's balance rising from £34,105 to £41,908 due to accruing interest. The NUS and graduate groups are calling for a reassessment of repayment terms to prevent a generation from facing financial barriers to home ownership and family planning. Despite these concerns, the government defends its policies, stating that the current system provides protections for lower-earning graduates.
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The inquiry and its findings could lead to significant changes in the student loan system, affecting current and future graduates.
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