Tuition fees – the most progressive policy we’ve seen in ages:
Worried about tuition fees? You probably shouldn’t be. £9,000 a year might sound like a lot to have to borrow to pay to go to university but the truth is that very few people will actually have to pay the lot back.Say you borrow £30,000 over the three years you are at university. If you then go on to earn below £35,000 you will end up paying almost none of the loan back in the 30 years before it is written off (in inflation-adjusted terms)Only if you earn more than £70,000 will you eventually end up paying back all that you have borrowed plus interest. It is also remarkably progressive in the pure sense of the word: the low earning pay very little, if anything, and the high earning pay a lot.what all the complaining is about doesn’t it?
I don't get it. So if nobody pays it back, what's the point in raising the fees in the first place? Are you encouraging a student loan book?
ReplyDeleteSaddling entrants into the job market with a large amount of debt is a *fantastic* idea. You've got to take on this debt if you want to get "on the ladder" of a high-paying career
ReplyDelete