25,000 people have signed a petition against Osborne’s loan changes
Graduates will now pay back their loans sooner than they agreed to
Within two days of the petition being created, it has acquired 26,700 signatures. If the petition reaches 100,000 signatures it will be considered for debate in parliament.
The changes to the student loan agreement were made by Chancellor George Osborne and, according to Martin Lewis at moneysavingexpert.com, could see students paying £306 more a year by 2020-2021 if they earn over £21,000.
In 2010 the government introduced that the loan repayment threshold of £21,000 would go up each year in line with average earnings from April 2017. The changes however, now mean that the the loan repayment threshold will be frozen at £21,000 instead – meaning students will begin repaying their loan earlier than they would have previously had to.
The petition aims to prevent these changes being implemented on students who taken a loan out since 2012. It reads, “a commercial company would not be permitted to alter the terms of a loan agreement, so why should our government?”
Students nationwide have spoken out about the changes, calling them an insult and describing them as “reptilian antics“.
Financial expert, Martin Lewis of moneysavingexpert.com has lead the debate and argued that retrospective changes to already agreed student loan conditions would lead to a serious lack of trust in the system.
The Chancellor has also been criticised for failing to outline the plans in last year’s autumn statement.