Source · Select Committees · Treasury Committee
Recommendation 11
11
With its Plan 5 reforms, the previous government chose to replace income- contingent interest rates...
Conclusion
With its Plan 5 reforms, the previous government chose to replace income- contingent interest rates with rates pegged to inflation, which suggested that it considered income-contingent loans as problematic. Instead, it opted to shift the burden of paying for higher education slightly away from the highest earners towards all loan holders through longer repayment terms and lower repayment thresholds. (Conclusion, Paragraph 45)