Have your say on changes to the student loans agreement

Ed-1

glider3560 wrote: »

Why should student loans be any different?

Quite simply because they are about as far away from a commercial loan as you can get that they are barely a loan at all, even in legislation.

We are talking about income-contingent student loans, or in other words a graduate contribution scheme/tax. These are completely different to the mortgage-style student loans made before 1998 which were regulated loans.

1. ICR loans available since 1998 are not regulated by the Consumer Credit Act so amongst many things aren't written off in bankruptcy, don't go on credit files etc. etc. The Act that they are made under says they are not regulated loans.

2. They are heavily subsidised and many will not be repaid in full (which loans can you find where not repaying in full means anything other than defaulting?).

3. Governments are free to change taxes for everyone as we go along so why should the graduate contribution scheme not be the same just because it shares the language of 'loans' with commercial regulated financial products that are a completely different kettle of fish to student loans?

And in any case this whole decision to brand this decision 'freezing the threshold' has been misrepresented as the terms and conditions in this case aren't being changed - they are being left as they are. It's just the previous Government's intention that is not being implemented into the terms. It's a non-event in terms of legislation.