Stay-at-home students `could avoid student debt`

Students who stay at home during their studies could avoid getting into debt, under new plans being considered by the Government, The Guardian reports.

Ministers are considering offering free tuition to students who stay at home and therefore do not need loans or grants to support their studies.

Currently, students pay £3,225 each year in tuition fees and receive a loan to cover the cost, as well as loans for living expenses and grants for some poorer students. This means that overall student debt on a three-year course can easily exceed £10,000 - a fact that may discourage would-be students from poorer backgrounds.

A spokesperson for debt management company Gregory Pennington said: "Student loans are not necessarily as much of a burden as some other forms of debt, as they are only repaid (through payments representing a small proportion of monthly income) once the graduate earns over £15,000. But the prospect of incurring so much debt that will take so long to pay off may still be daunting to many people.

"This proposal, if it goes ahead, could help to encourage more people to go into further education without the fear of running up large debts."

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