IT Firm To Help Graduate Staff With Student Loan Repayments

Fri, 01 Apr 2011

Computer software firm Microgen has announced it is to help its graduate workers clear up to £3,000 off their student loans each year.

The company said it will match loan repayments of up to £250 a month for every existing or future graduate employee.

However, it has written to the Department for Business (BIS) urging the Government to consider allowing employer and individual payments to be deducted from people’s gross salary to make the scheme cheaper and ultimately reduce the burden of student debt .

It explained that if the Government changed the loan repayment system by exempting payments from tax, it could avoid paying an additional £25,000 a year.

David Sherriff, chief operating officer at Microgen, said: "The debt burden on young British graduates entering the workforce is substantial and is almost certain to increase with the forthcoming changes to university tuition fees."

"It is a responsibility of successful employers to support ambitious young graduates and to facilitate their career development."

He added that helping students pay off their loan debt would attract the top graduates. "We have got to compete with the big boys like IBM and this will help with recruitment ."

The BIS said it would reply to Microgen’s request "shortly".
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