Means-testing of Student Maintenance support
Osborne’s speech today seemed to indicate the abolition of means-testing for student loans promising ‘all students from all backgrounds’ access to an annual loan of £8200.
The text of the Budget suggests otherwise adding the caveat:
2.202 Student maintenance – Maintenance loan support will rise for students from low and middle income backgrounds up to £8,200 a year studying away from home, outside London. From the 2016-17 academic year, maintenance grants will be replaced with maintenance loans for new students from England, paid back only when their earnings exceed £21,000 a year.
I am waiting on some figures from the Treasury to assess what this means exactly. But a quick calculation suggests that a student studying away from home outside London from 2015 whose family income is under £25 000 would currently receive £3 387 in grant and a maximum of £4 047 in loan. So this policy might see students having an extra £766 per year while studying but much larger graduating SLC debts.