Tories claim to save up to pound;1,000 on student loans
The scheme launched this week would double the threshold at which graduates begin repaying their loan and graduate endowment from income of pound;10,000 a year to pound;20,000. There would be a 10-year repayment period without pre-payment penalties and an estimated pound;3,500 a year tax allowance (worth about pound;700 a year) for 10 years.
Brian Monteith, the party's education spokesman, said that students who had taken three-year courses would be pound;1,000 better off and those after four-year coures pound;200. He said: "Students have been asking that they should not have to repay loans until they reach a higher salary and have been asking for the assurance that they will not have to repay top-up fees. Today's announcement shows that the next Conservative Government will be able to deliver these improvements."
The Tories want to endow universities across the UK, including pound;350 million for those in Scotland, through "securitising" - using the guarantee of funds generated by - the student loans scheme to create a cash stream. Universities that benefited would be forbidden to introduce top-up fees as some vice-chancellors want.