The Institute for Fiscal Studies (IFS) has said that interest rates on student loans in England and Wales are set to soar to as high as 12%, costing higher-earning graduates an extra £3,000 unless the government intervenes.
Students in England under the Tories have higher loans as they pay £9,250 a year in tuition fees. In Wales under Labour tuition fees are £9,000.
Thanks to the SNP Government, Scotland has free tuition, so student loans are much less.
Interest rates on post-2012 student loans are based on the retail price index, with the rise in the RPI in March meaning most recent graduates in England and Wales will be charged 9% from September, up from the current rate of 1.5%.
High-earning recent graduates in England and Wales with a typical loan balance of £50,000 would incur £3,000 in interest over six months.
Kenneth Gibson MSP said:
“I do feel for those in England and Wales, where your education depends on the ability to pay, not the ability to learn.
“This is just another example of the stark contrast between what it’s like to live under the Tories or Labour, compared to SNP-led Scotland, where you don’t get penalised for going to university.
“My hope for those down south is that the UK Government acts to reduce these spiralling interest rates.”
Read the IFS observation here.