UK government agrees to clearer student loan guidance, rejects threshold freeze reversal

The government has responded to an inquiry's mis-selling finding by committing to clearer loan guidance for new students while declining to reverse a freeze on repayments.

• The government said it will make it prominent that loan repayment rules may be amended by government and Parliament, without committing to any change for existing borrowers.
• It rejected Treasury Committee recommendations to reverse the three-year freeze on the Plan 2 repayment threshold at £29,385 and to issue loans on a contractual basis.
• Treasury Committee chair Meg Hillier said the guidance does not help graduates "facing punitive repayment terms on a loan which keeps growing," urging the chancellor to reverse the freeze in the autumn Budget.
• Rethink Repayment founder Oliver Gardner said the response "does not go far enough" and demanded "concrete action" in the autumn Budget.