No Student Loans for UK Middle Class
by A Labour thinktank sent out a controversial report saying that middle class families shouldn’t be granted a student loan, because it was expensive for the government, and poorer students would benefit more. There are major flaws in this concept.
A Labour think-tank in the UK made a report that all the students of middle class families should be denied student loan for university that cover both tuition fees and living costs. This report has sparked controversies with the Industry of Public Policy Research (IPPR) claimed that the effect on the government because of these government funds was far too expensive. The tuition fees loans cost the government £33 for every £100 borrowed and maintenance costs £21 for every £100 borrowed and the IPPR asked the parents of these middle class families to share the cost of living and education.
The student loan is only paid off after the graduate is earning £15,000 or more and they do not have to be paid back by then. It claimed that those families that had the poorer but brighter individuals must be prioritised for student loans rather than students of other families that had an income up to £80,000 per year. I was outraged by reading this and decided to look deeper as to why this controversial report is an extremely bad idea of students and their families.
What defines middle class? A family with a suitable income that can afford an appropriate amount of things could be defined as middle class but to burden a family that earns a sufficient amount for a family of four with student costs could mean that the family is lead into financial stress. As it is, in these hard financial times, when everyone is encouraged to share, student costs could mean that there is no security in the savings of the family and that most of that money goes off to students.
With more and more students being able to make the grade and get into university, more and more families which have a mostly middle class families, may find the cost far too unbearable leading to the student having to pull out of university which doesn’t do these hard times any favours because this all leads to a vicious circle of unemployment. About 613,000 students have applied to university this year and many have got in so should their education be dependant on money? What makes this idea even worse is that the universities are trying to squeeze in a £7000 per year student fees increase which means that these middle class families are put under even more stress should these universities be successful.
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Post Commentraman13
On August 26, 2009 at 9:17 am
Very Informative
Best Regards
Jenny Heart
On August 26, 2009 at 9:31 am
Well written with much thoughfullness. Like it!
Christine Ramsay
On August 26, 2009 at 1:41 pm
I can see this could be a problem for some families. I think that if there are two siblings at university at the same time there will be help. We were in this situation when my son went to university and we had no help despite being in financial hardships ourselves. It was a really tough time but it was worth it. You put your arguments well.
Christine
Collette Edwards
On August 27, 2009 at 12:30 am
great artical, someone did their homework on this subject, Life isn’t always fair, All I can say is the same thing I’ve always told my kids, and still do lol “It will always get worse before it gets better” “D
Lostash
On August 28, 2009 at 7:00 pm
Interesting. I think that the granting of these should be means tested….maybe not a popular view! I also think that degrees are not really that important any more unless you are choosing a specific career path. I know of people that (for example) gain a degree in Biology, and end up on a management course in a bank? To me, thats a waste of a degree! I think that employers need to look more closely at the type of graduates they take on, with degrees relevant for that particular business. I’ve been a manager for many years, and it really makes me quite angry when existing, capable and experienced staff are overlooked for promotion in favour of graduates with degrees in an irrelevant subject. In my experience, they often make very poor managers too. With regard to the loan, maybe a scheme should be put in place that writes off a percentage of the loan if the candidate works in an industry relevant to the degree. Those that don’t should pay it back in full! What do you think?
Savvy Student
On September 11, 2009 at 6:49 am
A very well written and interesting artcle that raises many talking points. I\’m starting university next week and am extremely worried about how I will cope with the debt that comes from a 5-year medical degree. My family is in that awkward position of not being poor enough for help but not being rich enough to pay it for me. Surprisingly I was given a small amount of money as a grant from the government but enough to make a significant difference to my situation. I will be getting a small amount of help from my family but I don\’t see it fair that they should suffer for the sake of my education. What worries me further is that in 3 years time my sister will be starting university and then my parents will have to cope with the cost of two children at university. The government needs to stop chucking money at getting thousands of students pointless degrees that will not help them clear their debt and focus more on those who are following career-specific courses, though as you can see my view is slightly bias to say the least.