New HEPI, NUS and London Economics report: Understanding Plan 2 student loan repayment terms

New research by London Economics has found that following various changes to student loan terms, implemented since early 2022, the Treasury are making a surplus of £679 million for the 2022/23 cohort of undergraduate student entrants in England. The research also found that the Government’s changes have had a greater adverse impact on lower- and middle-income earners, while higher earners have been much less affected.  

In response to these new findings, the National Union of Students and the Higher Education Policy Institute are today publishing an alternative model for student loans, which would be cost-neutral for the Treasury, i.e. the Exchequer cost of funding the cohort is close to zero.  

You can read the full report here.