MSE News: Autumn Statement 2015: Hidden hike in student loan repayment a 'disgrace'

nemo183

Since less money will now accrue than before 2012, when the changes were made, we're all subsidising it. The repayment model, (from the Department of Industry) hasn't been altered since 2014, when it was proved to be incorrect.

Nobody's had the balls to admit just how wrongly this has gone. The RAB figure shows that overall, we will collect less in loans than under the old system, so the shortfall will have to be made up by us.

chattychappy

If the beef is the claimed retrospective nature of the change, then the remedy is a judicial review on the grounds of a breach of legitimate expectation. Government decisions which have had retrospective effect have been successfully challenged in the courts. It is a balance between the desire to prevent a parliament binding a future parliament (seen as anti-democratic) and the perceived injustice when people have gone into some kind of quasi-contract with the government only to have the T+Cs retrospectively changed.

Lots of case law on this. (A wiki is at https://en.wikipedia.org/wiki/Legitimate_expectation)

Given the huge number of law students in the pot, I would have thought if there were any grounds for complaint, a JR would have been started by now. Judicial review is very fashionable amongst young lawyers these days.

patanne

Except that wouldn't they be ones that were on way too much income anyway? So no self interest there then! Sorry folks if that seems a bit off re the general way of things on here but no law student has shown much interest so far so I guess that they are way over the income band from the start.

setmefree2

Campaigner and television presenter Martin Lewis has said he will personally foot the bill for lawyers to investigate the Government’s recent change to student loan repayment terms, which could cost graduates thousands.

The lawyers will be exploring whether there are grounds for a judicial review, a type of court proceeding in which the lawfulness of a decision or action taken by a public body is reviewed by a judge.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/12049856/Martin-Lewis-tackles-Government-over-student-loans.html

Lewis has been a major source of advice on the new student loan system since its launch, but questioned in a blog post on MoneySavingExpert today how he can “in good conscience explain student loans if the Government is prepared to change students' terms after they’ve signed up.”