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Martin Lewis on Student Finance

This 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.

Comments

Jake Maverick said…
under the agreement I'm not obliged to pay...and i refuse to do until proper statements are provided as well as copies of the original agreements...

fact is I've had six years of abuse, threats, harasment and with the ocnstant Data Protection violations and destruction of my credit rating I now consider they owe me far more than i supposedly owe them....nowet i can do abt that one either...most likely soembody wille nd up getting killed over it....they do send nameless yobs around to make threats, block the drive/ haress the neighbours etc...

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