Money saving expert might challenge the government over student loans
The Money Saving Expert, Martin Lewis, has gathered together a team of legal experts to look at whether or not they can challenge the government over student loans, specifically, the new rules around the repayment of said loans.
George Osborne said that he was freezing the level at which graduates pay back their debt at £21,000. Martin Lewis thinks this is a "disgrace". "No commercial company would be allowed to do it - the government shouldn't be allowed to either," he said.
He continues: "If you earn £22,000 and the threshold had increased to £22,000, you'd have repaid nothing. But with it at £21,000 you'd repay £90 a year."
"How can I, to so many people, in good conscience explain student loans if the government is prepared to change students' terms after they've signed up, in some cases after they've graduated? In a personal capacity I've engaged the solicitors Bindmans to investigate if there are grounds to judicial review this decision and to look at other legal grounds to challenge it (it may be people with student loans will need to agree to take cases - I doubt there'll be a shortage of volunteers)."
The new £21,000 limit was planned to be increased with earnings from 2017, but now, it'll be fixed until April 2021. This is a bid to reduce the government's debt.
Lewis added: "My view (and it may be nonsense hence why I'm engaging lawyers) is there are many areas of weakness in this announcement - primarily that this is an unfair change in contractual terms for students, one no commercial company would've been allowed to do."
You can read his full blog here.