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Lowering the income threshold for student loan repayments would really start getting too many young graduates salaries, lowering their net salary at a time when they need as much available income as possible (Report, 27 September). The government’s subsidy of the student loan system is unnecessarily expensive. But there are much better options to reduce it.
This can extend the total repayment period to 30 years, which means that middle-aged middle-income earners have to repay their student loans a little longer. This can increase the interest rate on student loans, which means that only a fifth of the most affluent graduates repay a little longer. It can also impose a levy on the universities that charge the highest fees, but consistently generate an excessively large number of graduates with salaries which means that the majority of their student loan will be written off.
CEO, Bright Blue
London EC4, UK