Conservatives: 10% discount for repaying student debt early

12 October 2009

Under Conservative plans, graduates in England would be offered a 10% discount on early repayments of their student debts, the Guardian reports.

The plans, which aim to `raise an emergency fund to expand universities and prevent a repeat of this year`s admissions crisis`, would allow any graduate who made early debt repayments of above £500 over the next three years to get a discount.

The shadow universities secretary, David Willetts, said: "Our plan to give graduates a discount for repaying loans ahead of schedule will give thousands more young people the opportunity to go to university, rather than staying on the dole."

Wes Streeting, president of the National Union of Students, commented: "Given that demand is set to increase further still next year, the commitment to providing additional, fully funded places, is incredibly important.

"We would be concerned if this approach set a precedent whereby those from more affluent backgrounds enjoyed preferential repayment conditions on loan debt. However, given that those from the poorest backgrounds are most likely to lose out without an urgent expansion of places, this is an acceptable short-term fix."

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