- 20th January 2020
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
Government promises review of student loans repayment system
The government has vowed to undertake a revamp of the current student loans repayment system.
From April 2020, graduates will only be required to start paying back their loan if they earn over £26,575 per year.
In a move designed to modernise the system, the government intends to introduce a new online repayment service, which will provide graduates with ‘up-to-date balance information’.
Graduates are also being urged to switch from salary deductions to direct debit towards the end of their loan in order to prevent them from over-paying.
Commenting on the review, Chris Skidmore, Universities Minister, said: ‘With more and more people enjoying the benefits of a university education, it’s only right that graduates have easy access to the information they need about repaying their student loan.
‘I urge all graduates to use this new service and to join the direct debit scheme as they approach the end of their loan to ensure a smooth end and not repay more than they should.’