The Brilliance of an idiotic policy of Student loans

[SirGalahad]

https://www.bbc.co.uk/news/education-46591500

A change in how student loans are recorded in the public finances will add £12bn to the deficit, after a ruling by the Office for National Statistics.

The amount expected not to be repaid, which could be 45% of lending, will now be reported as public spending.

So as the current government let Universities increase the tuition fees and squeezed the jobs market through austerity reflected in lower real wages ( we still have not recovered to the levels since 2010) a significant proportion (45%) of this debt will now be paid by the Government.

These attempts to shift spending off the Governments balance sheets like PFI have ended up costing more in the long term.

It's a ridiculous state of affairs run by ideologues.

 

[ellal]

Apologies, I didn't spot your version before posting my thread...

 

[ban-all-sheds]

It will end what has been called a "financial illusion" in student fees."

It will end what, if adopted as an accounting practice by a company, could well have seen the directors gripping the rail...

 

[motorbiking]

They could offer infrastructure grants to Universities who reduce tuition fees, with the grants payable on completion. I'm surprised they didn't think of this.

 

[SirGalahad]

They could offer infrastructure grants to Universities who reduce tuition fees, with the grants payable on completion. I'm surprised they didn't think of this.

You said THINK.