|
Post by jamo on Jul 22, 2014 19:48:02 GMT 1
For those of us having been through the whole student loan cycle, either as parents or students this makes for interesting reading. When even the profiteers and chancers can't make it work you do wonder what this current government is storing up for the taxpayers. Interesting reading
|
|
|
Post by GreatWesternShrew on Jul 22, 2014 20:31:51 GMT 1
Some, like my good friend's has been totally lost in the system (lucky bugger!!).
I'd find it hard to pay back my student loan as it is, without there being interest on it.
Well done to the liberals on this, you've saved me money and a lot of bother!
|
|
|
Post by Matster on Jul 22, 2014 22:24:06 GMT 1
The government paid the uni's money for tuition, they switched it to be a debt on the student to pay for the tuition by lecturers. It was pointed out at the time that not all will earn enough to pay off debts, Martin Lewis stated it was a good idea to have it and keep paying it rather than over pay to clear it.
Theoretically the government paid money to uni's and lost that amount, now they pay it to students and lose a percentage of it in another way. It's still the same monetary amount, just more visible to Johnny Public. Which way does the Government have a greater chance of recovering that debt? Probably through the loan system as it will hang over peoples heads for their working lives.
|
|
|
Post by frankwellshrews on Jul 22, 2014 22:40:22 GMT 1
"Willetts used to say that for every £1 issued as a loan, the public would get back nearly 70p. That number has been dropping. It was 65p, according to Osborne at Christmas. The Office for Budget Responsibility and MPs now believe that the government will recover only 55p of every pound loaned to undergraduates."
Stop me if I'm wrong but I can't see how the government's "lost" 12 billion on this. In fact the bigger loss would have occurred if we'd have sold off the book at market rate, probably as low as 10 or 20p in the pound compared to the 55p quoted above. As it is, we've still got a sizeable asset on the books through which we are likely to be able to realise a lot more revenue than if we sold it off now for a short term gain. It also means that the Tories are denied a boost to their deficit reducing credentials in the run up to the General Election.
All in all, sounds like a result to me.
As for the question of the money the country loses on student loans every year, the current system isn't perfect but would people really prefer a system where only the independently wealthy or those able to secure credit in the private sector (very unlikely for a prospective student) at what would likely be very prohibitive rates have access to higher education? In theory, that loss should be offset by the benefits of an educated populace and equitable access to higher education for all.
|
|