Submitted by Rebecca Farmer on Wednesday 10th February 2021
Published on Wednesday 17th February 2021
Current status: Closed
Closed: Tuesday 17th August 2021
Signatures: 68
Relevant Departments
Tagged with
Build ~ Building ~ Children ~ Education ~ Loan ~ Maternity ~ Parent ~ student loans ~ Universal ~ Universities
Stop adding interest to student loans during maternity/paternity leave
The Government should stop interest being added to a loan whilst a parent is on maternity/paternity leave. People who do not have children will have more of their loan paid off compared to those without children. This is penalising graduate parents for having children and an education.
Loan repayments stop if a parent on maternity/paternity leave income drops below £26,575 – but the interest doesn’t. It means that many graduates are effectively being financially penalised for having children. For example, both parents are graduates from the same course, at the same university and from the same academic year. One parent takes his/her full maternity/paternity leave. One will a much bigger loan than the other, because interest continues to build even on leave.
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