Vince Cable has announced that the Government plans to change fees for going to University in England. Let John know what you think here.

The plans include:

• Raising the amount that a university can charge for a university course from £3290 per year to £7000 per year
• Charging a higher rate of interest on student loans. At the moment students effectively pay no interest (it is kept in line with inflation).
• Graduates now pay 9% of their income over £15,000 to pay off their loans (often through PAYE, like most income tax and national insurance). They would still be required to pay back 9% but...
• Graduates would only pay it on annual income over £21,000.
• As with the current system, students who never earn more than £15,000 / £21,000 would never pay back their loan.
• Most students today will pay off their loan within 11 years. The Government's proposed changes will mean the average student takes 30 years to pay it all back.

It is likely that any changes would only apply to new students.

You can read the National Union of Student's response here (opens new window). They are against the changes.