A loophole in the UK's tuition fee system allows thousands of people over 60 to take out taxpayer-funded student loans with minimal chance of ever repaying them. There is currently no upper age limit on these loans, meaning mature students can access them on the same terms as younger people. However, older borrowers often have pensions and lower incomes, leading to many not meeting the repayment threshold. This raises concerns about intergenerational fairness as younger students face decades of loan repayments while older generations benefit from potentially tax-free loans.
People in their 60s have taken out £37m in tuition fee loans – they could technically face repayments past their 100th birthdayThousands of over-60s are taking out taxpayer-funded student loans they are unlikely to ever repay due to a loophole in the tuition fee system.
The data raises fresh questions about inter-generational fairness, with older people who have benefited from cheaper housing and bigger pensions able to take out the loans without being likely to face decades of crippling payments. “Unlike those taking out loans in their 60s, who are unlikely to repay in full, many taking out loans at 18 will face four decades of repayments, throughout their whole working lives.
Students are not eligible for a maintenance loan if they are 60 or over on the first day of the first academic year of their course. Instead, full-time students aged 60 and over can apply for a “special support loan” – though these are means-tested. There are around 1.43 million workers aged over 65 in the UK, but many are self-employed or working part-time.
STUDENT LOANS EDUCATION LOOPS HOLE INTERGENERATIONAL FAIRNESS UK
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