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Student loans to accrue interest from start

After graduating from university Manx students will immediately incur interest on the loan they owe the government.

Last month Tynwald backed the introduction of tuition fees for the first time.

Students will have to pay £2,500 for each year at university although they can take a loan out from the Island's government to cover the cost.

A Tynwald Standing Committee met yesterday and Chief Executive of the Department of Education Stuart Dobson shed light on how the loan system will work.

After graduating the student loan immediately gains interest and Mr Dobson said over three years the interest would roughly be £1,600.

The students don't have to pay the loan back until they earn £21,000 or above, however, the interest can grow before they earn this amount.

Chairman of the Committee Brenda Cannell MHK said it may be a number of years before they earn £21,000 and suggested this was saddling youngsters with debt.

She also said it could affect the credit rating of students in the future and have a knock-on effect for the rest of their lives.

Mr Dobson said he'd be meeting with the treasury minister in the near future to discuss this aspect.

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