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<p>Repayment terms for taught postgraduate loans announced at Autumn Statement have
not been finalised. The Government will launch a consultation early in the New Year
to inform the design and terms of the loan before final decisions are taken.</p><p>
</p><p>Postgraduate taught loans will be designed so that most individuals will repay
in full, in recognition of the high private return to individuals, but they will beat
commercial rates. One way of doing this is to charge an interest rate of RPI+3%, with
repayments of 9% of income above a threshold of £21,000, frozen for 5 years, repaid
concurrently with undergraduate loans.</p><p> </p><p> </p><p> </p>
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