Unpaid loans to university students in Wales will continue to be written off after 30 years, the Welsh Government has confirmed, even as England extends the repayment period to 40 years. However education minister Jeremy Miles said reform had not been ruled out in future.
Mr Miles said Wales had opted to retain the “fairer” 30-year repayment period, but did not rule out changes in future years, saying the 30-year timeframe would be reviewed annually to ensure it was sustainable. Mr Miles said paying back student loans over 30 years was fairer on lower earners and Wales will retain “our current fairer and progressive student finance repayment system, despite changes made in England”.
For English students the length of the loan will be increased to 40 years for new borrowers starting courses from September 2023. Wales’ student support repayment system has historically been aligned to England’s, but adopting the new English system would mean Welsh students would repay loans over a longer period of time, with higher earners paying less and middle- and lower-income earners paying back more than at present, he said.
Last year the Welsh Government had originally decided to temporarily retain the current student loans system for the academic year to assess the changes being made in England.
It has now decided to retain the current 30 year period, but admitted it would be “subject to annual review to ensure it remains sustainable”.
