Postgraduate Education

House of Lords written question – answered on 16th December 2014.

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Photo of Lord Taylor of Warwick Lord Taylor of Warwick Non-affiliated

To ask Her Majesty’s Government what the repayment terms for the proposed postgraduate student loan system will be.

Photo of Baroness Williams of Trafford Baroness Williams of Trafford Lords Spokesperson (Department of Business, Innovation and Skills), Baroness in Waiting (HM Household) (Whip)

Repayment terms for taught postgraduate loans announced at Autumn Statement have not been finalised. The Government will launch a consultation early in the New Year to inform the design and terms of the loan before final decisions are taken.

Postgraduate taught loans will be designed so that most individuals will repay in full, in recognition of the high private return to individuals, but they will beat commercial rates. One way of doing this is to charge an interest rate of RPI+3%, with repayments of 9% of income above a threshold of £21,000, frozen for 5 years, repaid concurrently with undergraduate loans.

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