Russell Group Proposals for Student Loans (0910P29)

Status: Lapsed | Zone: Student Finances

Passed: 14/06/2010 | Lapsed: 04/02/2014

This policy was discussed at the following meetings:

  • That undergraduate students are required to pay top up fees
  • That UK undergraduate students are given a student loan, whereby fees are only paid back when they are earning over £15,000 a year
  • The current Browne review of Higher Education funding
  • The proposals by the Russell Group of Universities for students to pay back their student loans earlier and at higher interest rates
  • That the proposals of the Russell group were due to concerns about inadequate funding for universities
  • That current interest rates on student loans are linked to the rate of inflation
  • That original ‘mortgage style’ loans were repayable in a fixed term of 5 years and that students were not required to pay back these loans until their salaries reached a high level and that this rose every year according to the cost of living
  • That original ‘mortgage style’ loans mean that students were not paying back loans, and may still not be
  • That in 1999, the system of loans changed to the 9% above a salary of approximately £10,000.
  • The introduction of variable tuition fees in 2006
  • That in 2006, the salary level upon which fees would be required to be paid back was raised to £15,000
  • That university education should  be open and  accessible to all, regardless of cost and that the Russell group proposals have the potential to discourage those from lower income backgrounds from coming to university
  • The intention behind the current system of fee repayments is to allow students the time to move up the career ladder before they have to start paying off the student loan
  • That higher interest rates or requirements to pay off a student loan earlier would not give students time to move up the career ladder but would place a heavy burden on students to find any job, simply to pay off their interest
  • That students should not be used as an easy way to find funding
  • That original ‘mortgage style’ loans were great for students and allows them to find a better job before having to pay off their loan
  • That the current loans system means that graduates on low salaries may struggle to make repayments
  • That the current loans system means that graduates on low salaries who may find it difficult to afford the cost of living on such salaries, are levied with having to start paying another debt they find unable to pay off
  • That the interest rates placed upon such loans makes the loans even more difficult to pay off and that some graduates will find it difficult to pay off the interest alone
  • That the level of salary upon which graduates would have to pay their loans back was raised in 2006 due to recognition that the current level was too low, and that students would be deterred from coming if the previous level of salary was used
  • That if the interest rates were to be raised, or the level of salary dropped to lower than £15,000 before repayments, this would deter students from coming to university, particularly those from a lower income background
  • That if graduates were required to pay higher interest or pay back earlier due to a lower salary, that this would call into question the real benefit of coming to university, as you would not be given the opportunity to move up the career ladder before you were having to pay off large debts
  • To oppose Russell Group proposals for student loans
  • To oppose any proposals to raise interest rates on student loans or to move to the interest rates away from the rate of inflation
  • To oppose any proposals to lower the level of salary before the requirement to pay back the student loan
  • To mandate the President to speak to local MPs and ask them to support our opposition
  • To mandate the President to pressure the University and Vice Chancellor to support students and oppose the Russell Group proposals
  • To pressure the University to ensure fair and equal access for all students based on ability, regardless of developments in the political sphere to higher education funding
    Sorry, there are no Mandates for this policy