LCO- Student Loan Threshold

I've placed an LCO in to the ballot regarding raising the threshold that students must pay back their student loans, which will take place tomorrow. I will seek to draw powers down from Section 22 of the Teaching and Higher Education Act in relation to the powers over student loan repayments and regulations. Obviously it is an outline of what I wish to do, and I have not put a figure on the threshold as I wish to discuss this if and when my LCO is chosen.

I sincerely believe that with the rising levels of debt that this is an important political issue. It will not work as an action in isolation, but it is a step in the right direction. I am happy that NUS Wales have endorsed my LCO also, and that they will now continue with this campaign.

The list of LCO's from AMs will go live on the Assembly's website tomorrow. I will post the link then. I have also put in a measure regarding recycling and waste.

Here's the LCO then-

Student Loan Threshold

To increase the student loan threshold upon which graduates commence repayment under the Student loan Scheme.

Under current provisions graduates repay the student loan through 9% extra income tax on all earning above £15,000. In order to pay just the interest, the graduate will have to earn £21,671.99 ( with an interest rate of 3.2%) It will therefore be necessary to start earning above that rate to start paying off the debt.

A survey by the Association of Graduate Recruiters has shown that graduate salaries in Wales are amongst the lowest in the UK. The average amount in the UK is £22,000; in Wales it is £18,000. In addition, consideration must be given to the huge prices rises in housing, energy and transport which result in much lower disposable incomes for young people than might be apparent from their salaries.

In 2005, the threshold was increased from £10,000 to £15,000.