Successful Grads are Worst Off
Successful graduates are worst off under Coalitions proposed Fee’s Review
Whilst many students are today protesting against the governments plan to increase tuition fees, the Tab takes a look into who will be the most affected by the proposed changes to the education system.
After years of irresponsible spending by those in power, it is understandable that cuts need to be made. Whilst anyone would be opposed to increased fees, many will argue that the potential success one can receive from attending a Russell Group University, Southampton currently sitting at 12th in the leagues tables (Sunday Times), is more than enough to warrant this increase.
However, it is those of us who aspire to be successful which will be worst hit.
Although Vince Cable’s plan of the dreaded ‘Graduate Tax’ was shelved back in October, its fundamental idea has lived on under the variable interest rate that will be applied to all loans provided by the government.
With expectations of students leaving University with debts of £30,000, the variable interest rates would result in a graduate, who is earning £45k, repaying £2,160 a year for 30 years, compared to a graduate earning £25k, who would only repay £360 a year for 30 years. This would mean that the high earner would eventually pay back £64,800 compared to the low earners £10,800.
Whilst those low earners on the font line of the public workforce, who are vital for the day-to-day running of the country, should not be expected pay huge repayment fees, why should the successful who have worked hard to get to where they are, pay for those who have arguably failed?
The question must therefore be raised, what is wrong with the current method of repayment, whereby a student repays the debt that they owe and is not ultimately a burden onto others.