Proposals to reduce Student Debt (Apr 2006)

News Release

Credit Action Response to Government Proposals to Reduce Student Debt

Government proposals to ease student debt are likely to disadvantage the less well off further according to Credit Action, the money education charity.

Commenting on the reforms being considered by DfES, Keith Tondeur, national director of Credit Action, said: “With these proposals, the Government has finally acknowledged that student debt is real and rising, but cramming the whole university experience into two years or via a credits system is likely to create a two-tier system of higher education. Less well-off students will be forced to choose the shorter, cheaper options, thus losing out on other vital ingredients of a university education, particularly personal and intellectual development. "Plus it will be difficult for the Government to ensure that the shorter degrees are accorded the same academic respect as the more traditional ones in the eyes of employers.”

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For further information contact: Frances Walker 020 7636 5214 or Keith Tondeur on 01522 731550

Notes for editors: Credit Action is a national money education charity (registered Charity No. 1106941) established in 1994. It aims to teach people to manage money better and prevent over-indebtedness and uses a wide range of resources to this end. Credit Action also campaigns to encourage greater understanding of the need for more financial education and literacy. For those with debt problems, Credit Action offers a helpline through Consumer Credit Counselling Service, the UK’s leading debt charity.