New Loan Repayment Terms Will Not Deter Students From University

Fri, 06 Nov 2009

Changes to repayment terms for student loans will not force students to abandon their university plans, according to an industry expert.

The Student Loans Company (SLC) announced last week that it is strengthening its repayments system so that borrowers who move away from the UK after completing their studies will still be required to make payments on their outstanding loans .

The announcement led to fears that many students may be put off attending university .

But Johnny Rich, editor of independent university guide Push.co.uk, said this was unlikely to happen as most, if not all, students are fully aware that loans have to be repaid when applying for them, so altering the terms will not affect their decision.

He claimed that borrowers do not realise the benefits that come with a student loan, with features such as minimum income requirements and payment holidays making it an easy loan to repay.

However, he added that students’ expectations of their university courses may increase as a result.

"Students are facing tough times ahead and are likely to expect a lot from universities, especially if the Student Loans Company expects a lot from them over the years to come," he said.
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