Article: Students' five-year 'repayment holiday' on loans is abolished

Stricter terms to help fund 10,000 extra university places, Mandelson says

GRADUATES will no longer be able to take a five-year "repayment holiday" on their student loans under plans to fund 10,000 extra university places, the Government said yesterday.

Students starting degrees last year were offered an optional five- year repayment break after graduation to ease worries about debt and help those trying to buy a first home. But Lord Mandelson, who was given control of higher education in last month's cabinet reshuffle, said yesterday that the holiday was being cut to two years to help pay for new university places.

Aaron Porter, of the National Union of Students, said the reduction would ...

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