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IFS paper shows how inflation is eroding loans and fees enabling government to claw back £2.3bn
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Scooped by Graham Watson |
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This article highlights the fact that there's a little bit of fiscal drag about: in this case, inflation, and the failure of student maintenance grants, and, student loans to keep pace with this, means that the value of these things in being eroded.
In the former case, some students who - in real terms - should be able to get the former aren't eligible because the threshold for parental earnings hasn't changed over time. In addition, the fixing of the student loan payment threshold at £27,295, rather than rising in line with inflation has meant that borrowers earning £30,000 are paying an extra £113, relative to what has been agreed.
On the flip side, the government might argue that the fact that tuition fees have been fixed for 5 years means that there's been a 15% cut in their real value.