The government’s plans to place a levy on early student loan repayments will change little and add an unnecessary layer of complexity to the system

The government’s changes to how undergraduate education is financed means that those who earn more will pay a higher rate of interest repayments. Concerned that the most affluent will simply repay their fees early to avoid paying this higher interest, the government is considering introducing a levy on early repayments. Gill Wyness argues that this policy is unnecessary. There is very little evidence that higher earning graduates are repaying their loans early to escape interest payments, and the proposals will only add complexity and actually undermine the progressive nature of the system.