A Department for Education spokesperson said:
“Our student finance system was designed to ensure those from the
poorest families get the most support whilst they study. Those
STUDENTS currently have access to the largest ever amounts of
living costs support in cash terms and we have increased maximum
loans for living costs over the last two years.
“The student loan system needs to be fairer for both students and
the taxpayer. With graduate salaries rising it is only fair to
ask borrowers who are benefitting financially from their higher
education make a reasonable contribution towards its costs.
“We are also tackling dropout rates and improving graduate
outcomes so that students get better value for money – especially
those from disadvantaged backgrounds.”
Further information
- Maximum loans for living costs were increased by 3.1% for the
2021/22 academic year with a further 2.3% increase announced for
the 2022/23 academic year.
- We will continue to protect lower earners and no student will
have to make repayments on their loan until their income reaches
the £27,295 threshold.
- We’ve confirmed we have frozen tuition fees for the fifth
year in a row – reducing the initial amount of debt students will
take on.
- We know student hardship has been a real challenge through
the pandemic – which is why we’ve put in £5m this year via the
Office for Students to support students in need
- On top of that, we asked the OfS to protect the £256m set
aside for student premiums, which support disadvantaged students
and those who need additional help
- Of course all of this is in addition to the substantial
hardship funds many universities already provide
- My best advice to any student who is worried about making
ends meet is to speak to their university and seek support
- Average annual earnings for young graduates (age
21-30) have risen from £24,500 to £28,000 from 2016 to 2020.
- And in 2020, young graduates typically earned £6,500 more per
year than their non-graduate counterparts.
