Charge commercial interest rates on student loans
“The introduction of student loans reduced the burden of education on the state and allowed individuals far greater financial autonomy. However student loans are still subsidised by taxpayer to the tune of £1.2 billion a year (in addition to the tuition subsidy). There is no need for this support to continue – there is already a strong incentive for people to study, an earning premium of 77% over non-graduates.” ConservativeHome
I think this is an appalling suggestion. Without subsidized student loans the financial burden that would have been imposed by a commercial loan would have been enough to prevent me from going to university. Even under current terms the amount of debt I’ll graduate with is considerable and will hinder my ability to invest in a house or business for years to come. As for the assertion that 77% of graduates have higher earnings I would like to see the data to substantiate this claim. For select number of vocational courses (such as mine) this may be true, but there are many other courses which have straddled students with massive debts for no benefit or improved job opportunities.
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