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Graduates to enjoy "repayment holiday"

Graduates are to benefit from a five-year "repayment holiday" from their student loan commitments as part of a new government initiative aimed at offering prospective students greater financial support.

According to the Secretary of State for Innovation, Universities and Skills, John Denham, graduates would be able to take the five-year beak concurrently or over several shorter periods at any point after leaving university.

With young people finding it increasingly difficult to get on the property ladder, under the initiative, graduates would be able to defer payment of their loans while they save up for a deposit for a property, with personal loans an effective means of covering other expenses during this time.

Commenting on the initiative, Mr Denham said: "They will be able to take a break of one year, or tow, or longer- for up to five years.

"This would help postgraduates make flexible choices over their finances at key points in their lives and careers."

The news comes as several UK have launched 102 per cent mortgages aimed at graduates, who are then able to use their savings and personal loans to cover other outgoings over the short-term.

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06/07/2007 15:57:18

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