Justincyder
Posted: Wed Oct 13, 2010 7:28 am
Hi
You make some interesting points. And it is fair to say that although the government has accepted the approach used by Lord Browne in his report, the detail has not been finalised yet.
However, in the world of statistics, damn statistics, the key things to remember are that in the report, the cap on student fees is removed entirely i.e. universities can charge what they think the market will bear so that for example, medicine, law degrees could be at a much higher student tuition fee rate at Oxford than say media studies at Northampton or wherever.
Second thing to remember is that the whole motivator behind this report is that it is based on something like a 66%, reduction in state spending on university education.
"For example the threshold where you being to pay back the loan has been increased from 15k to 23k I believe, and it was explained that someone on say 25k a year would only be paying back ?30 a month with payments naturally rising incrememently accoring to salary etc.
Here it is worth remembering that the time to repay this loan has been extended to 30 years and it is 21K rather than 23K that has been suggested. The monthly repayment amount raises substantially as income increases e.g. ?68 a month if your gross income is ?30K a year, ?143 a month if your gross income is ?40K etc. However remember that a wage of ?25K in 20 years time might be a total pittance and people's gross incomes will be higher most probably and therefore their repayments will also rise .
"And perhaps the psychological pressure placed on those under-taking useless degrees to delay their entry properly into the adult world might see a decline in the numbers of these pointless courses with the funds then being diverted into more useful areas ie science/engineering "
I dont see how this follows from the proposed system. They plan to up the income from 15K to 21K as the point at which you start repaying the student fees so there will still be people, particularly those from well-off parents who will be doiing it almost as a leisure activity.
Cheers
D
You make some interesting points. And it is fair to say that although the government has accepted the approach used by Lord Browne in his report, the detail has not been finalised yet.
However, in the world of statistics, damn statistics, the key things to remember are that in the report, the cap on student fees is removed entirely i.e. universities can charge what they think the market will bear so that for example, medicine, law degrees could be at a much higher student tuition fee rate at Oxford than say media studies at Northampton or wherever.
Second thing to remember is that the whole motivator behind this report is that it is based on something like a 66%, reduction in state spending on university education.
"For example the threshold where you being to pay back the loan has been increased from 15k to 23k I believe, and it was explained that someone on say 25k a year would only be paying back ?30 a month with payments naturally rising incrememently accoring to salary etc.
Here it is worth remembering that the time to repay this loan has been extended to 30 years and it is 21K rather than 23K that has been suggested. The monthly repayment amount raises substantially as income increases e.g. ?68 a month if your gross income is ?30K a year, ?143 a month if your gross income is ?40K etc. However remember that a wage of ?25K in 20 years time might be a total pittance and people's gross incomes will be higher most probably and therefore their repayments will also rise .
"And perhaps the psychological pressure placed on those under-taking useless degrees to delay their entry properly into the adult world might see a decline in the numbers of these pointless courses with the funds then being diverted into more useful areas ie science/engineering "
I dont see how this follows from the proposed system. They plan to up the income from 15K to 21K as the point at which you start repaying the student fees so there will still be people, particularly those from well-off parents who will be doiing it almost as a leisure activity.
Cheers
D