Martin Lewis on Student Finance
post by Martin Lewis highlights the fact that the student finance system is not like a proper debt.
Comparing it to a mortgage. If you don't pay the mortgage then someone comes round an repossesse your house. You need to pay the mortgage whatever your income is.
For student finance you don't need to pay if you don't earn over £21,000 and bailiffs don't come around and repossess your brain if you don't pay. Instead the government says after 30 years that you don't even have to pay the contribution.
It is not a debt. It is actually a contingent liability.
I have not concentrated on the question of what money the government pays the universities (aka Tuition Fees) I have concentrated on what graduates pay the government (the graduate contribution, but also aka Tuition Fees). According to the IFS for 29% of Students (those with lower earnings) the payments by graduates are less than under the old system. This is the "fairer alternative" that the NUS were calling for.