Student loans should be paid monthly rather than termly, say MPs

Student loans should be paid monthly rather than termly, a group of MPs have said, in a move that will likely slash the number of impulsive loan-day hot tub purchases.

The change is one of a series of reforms needed for the current student finance system, which currently leaves students without the support they need, a report produced by the All Party Parliamentary Group for Students has found.

In addition, the household income threshold for determining your student loan should increase with inflation, meaning your parents could earn more money before your maintenance loan gets reduced.

At the moment, students whose household income is £25,000 or less receive the maximum student loan. However, the MPs say anyone whose parents earn up to £32,000 should be eligible for the maximum loan.

Living costs for student have risen far quicker than maintenance support, evidence from student reps heard by the MPS said.

Students who have to work to support themselves through uni often suffered from worse mental health and wellbeing, as they were often exhausted, stressed, and missed out on socialising.

“There was a sentiment expressed by a few of the representatives that an idea permeated the system of a ‘normal student’ – age 18, non-disabled, middle class, with a ‘typical’ family dynamic,” said the report.

“It was claimed that the system worked well for this student, but was not fit for purpose for anyone outside this narrow definition.”

Along with changes to the frequency and level of loan payments, the report also said maintenance grants should be brought back, and that the system of means testing should be reviewed.

Read more about student loans on The Tab:

• Rich parents will be told to give their kids £5k a year towards uni

• You’ll get your student loan next term, even if your uni has stopped teaching

• Good news! You’re going to have to pay back less of your student loan