Ecky-thump, your fear is unfounded:
Graduates who have completed their studies and are among the country’s higher earners will make a higher contribution towards the cost of their education. As their earnings increase, so will their contributions.
Graduates will not make a contribution towards tuition costs until they are earning at least £21,000, up from the current £15,000. The repayment will be on 9% of income above £21,000, and all outstanding repayments will be written off after 30 years. This means all graduates will pay less per month than they do under the current system.
In order to make the system financially sustainable, a real rate of interest will be charged on loan repayments, but with a progressive taper:
* For graduates earning below £21,000, there will be no real rate of interest applied to their loan.
* For graduates earning between £21,000 and around £41,000, a real rate of interest will start to be charged, reaching a maximum of RPI plus 3%.
* Above £41,000, graduates will repay at the full rate of RPI plus 3%.