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Tuition fees repayment threshold to rise to £25000

03 October 2017
Tuition fees repayment threshold to rise to £25000

Theresa May has made a major play for young voters, with a series of policies centring on tuition fees.

University tuition fees are set to freeze and the repayment earnings threshold is set to rise to GBP25,000 (US$33,400) as part of a new Conservative scheme created to placate students angry at the hike in tuition fees seen under the Tory government.

Plans to freeze tuition fees at £9,250 and raise the repayment threshold to £25,000 have been announced by Theresa May, ahead of a speech at the Conservative Party Conference in Manchester later today.

The change is likely to apply only to those graduates who took out the higher rate of student loans introduced in 2012, which perversely means that earlier graduates will have higher loan repayments even if they are on the same income level as later graduates with much higher debts.

Does this differ from Labour?

"By doing this it seems the government has finally, belatedly, learned from the bloody nose young people gave it at the last election", Lewis wrote, accusing the government of "lying" to students by freezing the repayment threshold.

What has the reaction been?

The timing of May's promise to freeze fees was "met with fury from Labour MPs", says the London Evening Standard.

Graduates will be able to earn £25,000 a year before they are required to make any payments against their student loan from the 2018/19 academic year, with annual fees being frozen at £9,250.

News report the Government are further considering cutting interest rates on loans and introducing lower tuition fees for those subjects where there is a skills shortage, such as engineering.

May's pledge to overhaul the tuition fees system is seen as an effort to win over young voters who overwhelmingly voted for Labour in the June general election.

However, he adds that the big question will be "whether cancelling an increase will be a bold enough move compared with promises to scrap them altogether".