Great news for pissed off students, a petition that lampoons the backtracking UK government and repayment thresholds has attained enough online signatures to be considered for a debate in parliament. Any petition that gets more than 100,000 signatures warrants debate and this particular uprising has got more than 123,000!
To catch you up with what brought this petition on: “In 2010, the government promised that from April 2017 the student loans repayment threshold of £21,000 would be upped each year with average earnings”.
“The government has now backtracked on this promise, freezing the threshold at £21,000. Graduates will now pay more on their student loans. According to moneysaving expert, two million graduates will end up paying £306 more each yea by 2020-21 if they earn over £21,000.”
“By introducing retrospective changes it threatens any trust had in the student finance system. A commercial company would not be permitted to alter the terms of a loan agreement, so why should our government?”
Strong words indeed.
Speaking to the Huffington Post, the 22-year-old engineering student who started this campaign said: “The changes destroy all trust that people have in the student loans system. Students signing up now will have no sea if loans will be sold off or terms changed retrospectively”.
So in layman’s terms, the cost of our loans (anyone who started uni post-2012) are being retrospectively hiked despite the government putting effort into a consultation that advised them not to freeze the threshold.
As we know, when you leave university you repay 9% of everything you earn above this threshold (£21,000). With the way that average earnings are increasing you’ll find that you’ll be paying way more off your student loan then you were promised when you first went to university.
Additionally, lower and middle earners, at this rate, won’t pay off their loans within the 30 year time-frame you’re given before the debt is wiped. This means that by the government freezing the threshold, we’ll have to pay more in order to avoid this outstanding debt and massive interest that comes with it.
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Higher earners will be paying more each month, naturally, which means that they won’t accumulate as much interest and their loans will be, at lack of a better word, cheaper overall.
It’s kind of messed up. If you want to take some action, sign the petition now!