There’s been a lot of commentary about the rights and wrongs of the forthcoming student fee rises and the amounts that will have to be repaid. Many people complain about its unfairness.
In an ideal world most would agree that we should educate as many of our young people to as high a level as possible so that we can compete with the millions (literally) of new graduates coming out of places like India, China… well the rest of the world really. The big question is of course, who pays?
Delving into the past it would appear that many people, me included, received a free university education which we in turn are not willing to pass on to our children the truth however seems to be a bit different.
I was a student in 1977-78 and received a grant but if the taxation regime of then was in place now and I got a job paying £20000 pa I’d be taking home £1250 pm, a graduate today repaying their loan from an income of £20000 would be taking home £1292pm –£42pm more.
A similar sort of discrepancy exists for those earning £25000 they’ll be £52pm better off.
Arguably, the only unfairness about this was in the past when the 80-90% of families (including those earning less than £15000pa) whose children DIDN’T go to university had to pay that same level of tax for no obvious benefit.
