David Davis calls for Tory U-turn on tuition fees and cancellation of student debts
The Brexit Secretary ‘would urge the Treasury to look at the financial structures to see if there was a better way for students’, a source told The Sunday Times
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.David Davis has reportedly called for the Tories to pull a U-turn on university tuition fees and cancel student debts.
The Brexit Secretary is said to have argued student debt is preventing students from contributing to the economy.
A source close to Mr Davis told The Sunday Times he said if the student loan book was an independent company it would have written off many of the loans as bad debt.
“With such a low repayment ratio, if the student loans book were an independent company its credit rating would be low and auditors would insist you write down the debt," the source told the paper.
“Doing so will help the younger generation get mortgages and would give them more money to spend, which would raise tax revenues for the Treasury. The mythical debt depresses everything.
“He would urge the Treasury to start with the answer and look at the financial structures to see if there was a better way for students that doesn’t leave the debt to hang over their entire lives.”
It comes after Theresa May pledged to review the tuition fees system.
The Government has pledged to freeze fees at £9,250 a year and increase the salary graduates need to earn before they pay back their loans from £21,000 to £25,000.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments