Full article here – http://www.bbc.com/news/education-41796728
Scrapping interest on student loans and extending the time limit on paying it back could help to avoid a future debt crisis, a centre-right think tank says. UK 2020 is proposing that interest on all student loans – typically 6% a year – should be scrapped. This would reduce unpaid student debt by an average of 10%, it said. Combining that with pushing back the current 30-year limit on debt repayment to retirement age would, the report says, increase the number of loans recovered from 25% at present to 80%, benefiting both graduates and taxpayers.
A previous UK 2020 report, issued last month, accused universities of running a “cartel” and failing to offer enough two-year degrees that could cut graduate debt.
A government spokesperson said: “Sustainable university funding and student finance are a priority in delivering this government’s objectives on higher education.
Qualifi Higher Education and Advanced Learner Loan recognised qualifications provide a cost effective alternative to 3 year undergraduate courses for which Universities typically charge tuition fees of £27,750. By studying Qualifi’s Level 4 and Level 5 qualifications and progressing on to final year Top Up at one of our partner Universities, students can dramatically reduce their loan debt and gain an Honours Degree; potentially in two years