Scrap student loan interest and extend payback time-review
Scrapping interest on student loans and extending the time limit on paying it back could help to avoid a future debt crisis, a centre-right think tank says.
The UK 2020 report said the measures would "bring down costs" for students and graduates.
Changing payback time limits from 30 to 50 years could also save billions of pounds of taxpayers' money, it said.
Ministers are reviewing the student finance system. They said sustainable university funding was a priority.
The PM recently abandoned an increase in tuition fees due next year, announcing a review of the whole student finance system in England.
Those graduating from university in summer 2017 left with an average debt of £50,000, according to estimates from the Institute for Fiscal Studies.
'Bring down costs'
In a report submitted as part of the review, UK 2020 is proposing that interest on all student loans - typically 6% a year - should be scrapped.
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This would reduce unpaid student debt by an average of 10%, it said.
Combining that with pushing back the current 30-year limit on debt repayment to retirement age would, the report says, increase the number of loans recovered from 25% at present to 80%, benefiting both graduates and taxpayers.
What would I repay?
If a graduate left university with a student debt of £50,000 and earned around £30,000, they would currently repay £67 a month.
After 30 years, £75,000 would have been paid but interest rates mean the loan would still not have been repaid in full.
Under the proposals, a student earning the same would pay £29 per month towards the debt.
And after 50 years, the full £50,000 would have been repaid.
