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Snippet No. 21 Sin a little and Promote Inequality. Bring back State Scholarships and give Diversity a chance.
Because all students can’t have scholarships or bursaries, is that good reason why only a tiny number students should have them! Look at these latest horror figures:
The Times 25 November 2013 page 38: PwC has calculated that students who started University last year will graduate with average debt of £40,000 to £50,000, about a third more than in 2012 and 20 times more than the early 1990s. PwC research showed that students borrowed £7.3billion this year, accounting for the vast majority of the £8.5billion increase in UK non-mortgage household debt.
“This significant increase is likely to have profound effects of graduates’ future and borrowing and consumption patterns”. Simon Wescott, a director of PwC’s financial services practice, said “With house prices continuing to rise ahead of earnings, and their debt levels increasing, new graduates are likely to find it more difficult to get on to the property ladder.”
These loans are paid back by paying 9% of any income over £21,000 with compound interest charged from date of inception of loan at rate of inflation + up to 3% per annum. The interest does not accrue while earning less than £21,000 per annum.
More horror figures about student loans http://tiny.cc/48z56w £890m of loans sold off to a debt collecting company for £160m. The tax payer loses £730m and defaulting students are fed to the “wolves”. I don’t envy them the consequences. Not even Wonga may want to know them. “Of the latest tranche of 250,000 loans sold: 46% of borrowers are earning below the repayment threshold – 40% are not repaying in accordance with the terms and conditions of their loans – 14% are repaying.”
BE WARNED More “robust” collection methods in the future!
n March 2013, there were 14,000 students living overseas, who were behind with repayments of £100m.” The National Audit Office.
You are growing the iceberg for the Titanic. This is the tip of it.
State Scholarships would involve selection and go against principle of Equality, but they would help disadvantaged, encourage social mobility, provide an incentive to study and help to keep best brains in UK.
If you are going to spread seed corn around, shouldn’t you make sure that at least some of it lands on fertile soil?
The Times 6 December, 2013 page 6 – Sadly, if predictably, it looks as though Vince Cable, the Business Secretary, does not agree. Announcing the end of the University cap and up to 60,000 more students, he said “We want as many people as possible to have the chance to go to university, regardless of their background.” Northern Rock all over again! Wendy Piatt, director of the Russell Group, said “We have always said that quality higher education should be prioritised over quantity, especially in times of limited funding. We are therefore concerned that the Government has chosen to put additional taxpayers’ money into growing student numbers so substantially.”
Votes in 2015? Impoverishment to follow.
Note: in USA Student debt is now $1.1Trillion and more than credit card debt!