DFEE's loan payoff plan goes for legal scrutiny

March 2, 2001

The Department for Education and Employment is taking legal advice after claims that its plans to pay teachers' student loans are illegal.

Education secretary David Blunkett recently announced proposals to tempt graduates to teach shortage subjects by paying off their student loans. Now his department is investigating suggestions that the measure might violate the Treaty of Rome, which enshrines free movement of labour in the European Union. The move could discriminate against other EU nationals.

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