ABSTRACT
Student loans must have income-related repayments [. . .]. Thus it is vital to choose Option D (UK, 1988, para 3.15). Loans of this type can vary along two dimensions. They can be organised via income tax or via National Insurance Contributions (NICs). There is a strong presumption that administrative costs are minimised when a small scheme (i.e. student loans) is ‘piggy-backed’ onto a larger one like income tax or the National Insurance system.
