The point at which Isle of Man students will have to start repaying their student loans is to increase by £2,000.
Tynwald approved regulations that will see the income threshold for when student loan repayments take effect rise from £25,000 to £27,000.
Education Minister Daphne Caine said the regulations see the income threshold for loan repayment, the point at which a student must begin repaying a tuition fee loan taken from Manx Department of Education, rise from £25,000 to £27,000. Caine said that aligned the repayment trigger with Isle of Man minimum wage levels.
She confirmed the new repayment threshold would apply to all students.
The minister said the regulations further provide that loan apportionment will apply to distance learners, recognising that those course fees were typically lower than standard off-Island university fees.
“This means distance learners should receive a proportionate loan so that the overall grant and loan split remains consistent with those studying off-Island, while students who study off-Island will continue to be able to access the full available loan amount where they are eligible.”
She added: “In relation to tuition fee loan levels, and in recognition of the UK Government’s policy that tuition fees in England will rise year on year in line with inflation, the amended regulations allow for increases in the amount of available tuition fee loan so that appropriate financial support remains available.”
Loophole Closed
She said the Education (Student Awards) (Amendment) Regulations close a potential loophole to ensure that students with substantial private trust income do not inappropriately qualify for support.
In addition, the minimum entry threshold will be lowered, from 80 UCAS points to 72, for students who have previously been a looked after child and for those who have been identified as having caring responsibilities.
Onchan MHK Julie Edge raised concern about increasing student debt.
She asked: “How many will be better off how many will be worse off and what is the maximum loss?”
Caine said the Isle of Man student award system remained “substantially grant based”. The standard tuition fee award of £9,535 consisted of £6,000 grant and £3,535 loan.
Members voted in favour of the regulations, 17-2 in the House of Keys, and 9-0 in the Legislative Council.