If you thought you could avoid paying back your student loan forever, we have a little bad news for you. The government recently announced that they plan to prosecute graduates who fail to pay back their student loan on time. Yeah, you read that right.
This is just the latest blow to students in recent years. In the last five years, we’ve seen fees rocket and the abolition of student grants for the poorest students. All in all, this means that it is more expensive than ever to gain a degree; a fact which will surely widen the class gap here in the UK.
So, what is the reason for the sudden criminalisation of graduates who fail to repay their loans? Well, Jo Johnson (Yeah, that’s Boris’ bro), seemingly has all the answers to our burning questions. He says that the move is simply “in the interests of fairness to both the taxpayer and to borrowers that meet their obligations.”
In a written statement, he also claimed that the government “will take stronger action to trace borrowers including those overseas, act to recover loan repayments where it is clear borrowers are seeking to avoid repayment, consider the use of sanctions against borrowers who breach loan repayment terms and, if necessary, prosecute.”
This comes after reviews from the National Audit Office, the public accounts committee and the business, innovation and skills committee recommended that the government seek to improve the repayment process.
Jo Johnson’s new strategy will mean that the government can trace people with ease and recover loan debts. The government will also be working with Australia (one of the popular emigration countries for university graduates) to make sure that everyone repays their loans in a timely manner.
In short, this means that the government will be stricter than ever when it comes to loans and repaying your student debt. What a time to be alive, eh?