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Loan changes ‘penalise poor and were not properly consulted on’

Lords legislation committee also criticises complexity of resulting student loan system

Government reforms to the student loan system in England will penalise students from poorer backgrounds and were not subject to sufficient consultation, the House of Lords Secondary Legislation Scrutiny Committee has concluded.

In February last year the Department for Education (DfE) announced changes to the loan terms for students beginning university from August this year. The changes include a lower earnings threshold for when graduates begin to repay their loans, and an extension—from 30 years to 40 years—in the amount of time it takes for outstanding debts to be written off.

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