Universities and
Science Minister David Willetts announced today the details of how
eligible part-time students in England will benefit from new loans
for tuition from the 2012/13 academic year.
These rules introduce a level playing field for full-time and
part-time study for the costs of tuition for the first time.
The loans replace the means-tested fee grant and study grant
which were paid to around 60,000 students. The loans will not be
means-tested, and it is expected up to 175,000 part-time students
will be eligible.
Vince Cable, Secretary of State for Business Innovation and
Skills, said,
"Part-time students have been neglected for too long. We
are committed to a level playing field for part-time and full-time
students. The progressive repayment system for graduates, whether
they study part-time or full time, will ensure anyone with the
ability and desire can afford higher education."
Universities and Science Minister David Willetts said:
“The repayment terms afford protection to low-earning graduates
whatever their financial circumstances when studying. That is fair
and progressive.
“A better deal for part-time students has been widely supported.
Employers particularly value graduates who already have experience
of the workplace, which is why making part time study more
accessible is one of the key goals of our higher education reforms.”
The amount of the loans will depend on the proportion of a
full-time course which is studied each year. The lower limit is 25
per cent and the upper limit is 75 per cent, the same as for the
fee grant now. This range will accommodate most Open University students.
Through a clause in the Education Act, currently before
Parliament, the Government also plans to limit the tuition charge
which higher education institutions can levy for part-time
students so that it can be covered completely by the loan.
Like full-time students interest is the Retail Price Index (RPI)
+ 3 per cent whilst studying and will depend on income when liable
to repay, varying from RPI for earnings up to £21,000 and
increasing to RPI + 3 per cent for graduates earning £41,000 and
over.
Part-time students will become liable to repay their loans from
the April after three years of study, even if they are continuing
to study. Repayments will only begin once earnings reach £21,000
at 9 per cent over this amount; if earnings are less than this
amount, there are no repayments and interest accrues at RPI. If
the part-time course lasts less than three years, then graduates
will repay from the April after they leave higher education.
Notes to editors:
1. For more detail on the part-time package please go to http://www.bis.gov.uk/policies/higher-education/students/student-finance/part-time-students
2. BIS' online newsroom contains the latest press
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