Sunday, June 11, 2017

Who Pays University education

I was very interested in the Fore ray over Student Loans. In 1970 we had about 15% of Young people going to University now we have nearly 50%. Remember the population has grown since 1970 so here comes the rub how do we pay for it? With this amount of people it is impossible to offer a Free University  Education especially as School leaving age in 1972 rose from 15 to 16 by 2015 it was 18, up to 18 education is free to all children, well say free it is paid for by the Tax payer.
So by definition those going to University would get a better Job in life and higher pay so why should they not pay for this?
As you can see the repayment is graduated on earnings. Those going into Jobs, which are low paid (but most probably serve the public) repay nothing or very little, those who go on to high paid jobs pay more. I think that is fair and remember their loan does not cover all Education expenses for them the Taxpayer still subsidize.
Now there is something to said for the Tax payer paying jobs we need for example if need engineers, Doctors, Nurses etc. We should encourage Students to take up these degree courses at the total expense of the Tax Payer until we fill the vacancies. The Labour idea of offering free places to all students including foreigners is ludicrous because it is not financial possible? Well it is possible but it would be at the expense of something else so what would that be?

3. What you repay
You pay back 9% of your income over the minimum amount of:
·       £17,775 for Plan 1
·       £21,000 for Plan 2
Interest starts being added to your loan from when you get your first payment. How much you pay depends on which plan you’re on.
Plan 1
Your income per year
Monthly repayments
£17,775 and under
Interest on Plan 1
You currently pay interest of 1.25% on Plan 1. You can find interest rates for previous years.
Plan 2
Your income per year
Monthly repayments
£21,000 and under

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