WEST WORCESTERSHIRE MP Dame Harriett Baldwin has welcomed an investigation into the cost of student loans.
The Treasury Select Committee has launched an inquiry into the student loans system with experts and Government Ministers called to give evidence on the repayments which affect hundreds of thousands of graduates.
Dame Harriett is a member of the House of Commons committee and had asked students to share their concerns and experiences ahead of the inquiry.
The controversial ‘Plan 2’ scheme sees some graduates paying back more than expected as repayment thresholds to pay back loans did not keep pace with inflation and interest rates have been varied during the term of their loan agreement.
Dame Harriett said: “This has been a significant issue in my postbag and I encouraged local people to share their own concerns with the committee which will assess the policy.
“Getting a university degree is a big financial commitment for a long period of time and while it is often the right choice, people need clarity and stability in order to budget properly. The Chancellor should not change the terms of the deal during the life of the loan.
“A Conservative Government would scrap the profit element of Plan 2 student loans by only charging interest in line with inflation.
“We’d fund this by scrapping low-earning degrees that don’t improve job prospects.
“We’d also fund 100,000 new apprenticeships for 18-21-year-old. We must give young people the best possible start in life after school.”
