Q&A: What are student loans and how will they work?

With all attention strongly focused on the possible introduction of income-contingent student loans, Niall Murray examines what they are, how they might work — and at what cost.

What is an income-contingent loan?

An income-contingent loan — let’s call it an ICL —would be designed to make college free at the point of entry. The loan would be paid back, probably at interest rates lower than commercial borrowing, only when a graduate reaches a pre-determined annual income.