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News release - 7 August 2002

Government to re-pay student loans for new teachers in shortage subjects

A pilot scheme enabling the Government to re-pay over time the student loans of newly qualified teachers in priority subjects - expected to benefit up to 12,000 teachers in England and Wales in its first year, came into force from 1 September 2002. It will apply to loans taken out through the Student Loans Company during first degree studies and initial teacher training.

To be eligible, teachers in shortage subjects - maths, science, modern foreign languages, English (including drama), Welsh, design and technology, and information and communications technology - must have:

  • attained Qualified Teacher Status (QTS) since 1 February 2002;
  • a teaching post in a maintained school, non-maintained special school, city technology college, city technology college of the arts or a city academy, in England or Wales;
  • started employment on a permanent or fixed term contract between 1 July 2002 and 30 June 2005, within seven months of obtaining QTS (with special arrangements in the case of maternity leave).
  • been employed to teach one or more of the shortage subjects for at least half their teaching time in a normal week.

Primary school teachers will qualify if they are employed in their first post as a specialist, teaching a priority subject to a class other than their own. The Repayment of Teachers' Loans Scheme also applies to further education teachers, with slight differences.

Mary Doherty, Director of Teacher Supply and Recruitment for the TTA, said:

'Interest in becoming a teacher is higher than ever, as more people recognise that teaching offers the opportunity to use the knowledge and skills they have acquired to help others. They are also recognising the improvements in salaries and career development opportunities.

'There is strong demand for the brightest and best graduates in some subjects, particularly in maths and science, and the private sector is offering a range of incentives to attract them.

'The introduction of loan repayments, complementing the existing training bursaries and golden hellos, means that teaching is better able to attract graduates in those areas where competition is strongest.

'At this stage in the year many new graduates are uncertain about their career choice. There are some vacancies on initial teacher training courses beginning in the autumn, and I hope graduates will consider teaching alongside their other options.'

Starting pay for newly qualified teachers across the country from 1 September is £17,595, with up to £3,000 extra in London.

Notes to Editors

  1. Details of the Repayment of Teachers' Loans (RTL) Scheme are set out on the Department for Education and Skills website teachernet. The scheme will operate initially as a pilot in the academic years 2002/3, 2003/4 and 2004/5. Regulations setting out the details of the scheme have been laid before Parliament, following Royal Assent for the Education Act 2002.
  2. New teachers will be able to have their student loans paid off over ten years for full-time teachers with income contingent loans, or around five to seven years for those with mortgage style loans. The full amount of outstanding loans will be repaid if the teacher works full-time and remains in an eligible post in line with the requirements of the scheme. For those who have studied in London for four years, the Government believes this could mean a saving of more than £13,000. For those who studied outside London, the benefit could be £10,500. Part-time teachers will receive pro-rata benefit. The scheme will cover supply teachers if they have a fixed term contract of at least eight weeks with a school, college or local education authority.
  3. Trainee teachers undertaking an accredited Initial Teacher Training course in England and Wales leading to a Postgraduate Certificate in Education (PGCE) may be eligible for a bursary worth £6,000. Golden Hellos, worth £4,000, are paid to eligible teachers in the shortage subjects after they have successfully completed their induction period, normally at the end of their first year.
  4. Information about how to become a teacher is available from the TTA website, www.canteach.gov.uk. Personal advice is available from the Teaching Information Line (tel: 0845 6000 991). Applications for teacher training places can be made on-line through the Graduate Teacher Training Registry.