London [UK] Oct. 14 (ANI): United Kingdom's former education secretary Nicky Morgan has been appointed to lead an inquiry into the rising costs of the student loans system in England and its possible replacement by a graduate tax.
The House of Commons' Treasury select committee, which is chaired by Morgan, will launch an investigation into the system of student loans next week, reported the Guardian.
This inquiry came after Prime Minister Theresa May announced changes to funding and repayments for undergraduates in England.
As per the Institute for Fiscal Studies (IFS) the changes will shift the cost of higher education by £2.3bn a year from graduates to taxpayers.
"Student loan debt is projected to be around £160bn within six years, and the government has announced that it will review the whole student finance system. The committee will scrutinise the current system and any future developments closely," said Morgan.
The Treasury committee will scrutinise the changes to student loans, including the repayment thresholds, interest rates, level of tuition fees and the impact on student finances.
The committee will also look at the viability of a graduate tax to replace the loans system and the government's plans to manage and sell its stock of student loans.
The Student loans which was introduced in 2012 became a major political issue due to its rising levels of debt carried by graduates after leaving university.
Under this system undergraduates take out loans of £9,250 per year for tuition fees, and maintenance loans of up to £8,400 a year for students living away from home outside of London (and £11,000 in London).
In return the Graduates have to pay interest on the debt while studying and after graduation, of up to 6.1 percent based on income. (ANI)