by markjewell on 16 October, 2012
The IFS has today released initial findings from a report into the changes in Higher Education finance, saying the new system introduced by the Coalition is ‘substantially more progressive’.
The report says:
“The average student will also be better off while at university, enjoying an increase in cash support of some 12 per cent.”
“The poorest 29 per cent of graduates will actually be better off under the new system [and the others will pay more].”
“Low-earning graduates benefit from the increase in the earnings threshold, which (combined with the debt write-off after 30 years) ensures that the majority of their loan is never repaid. This makes the new system substantially more progressive than its predecessor: the richest graduates are likely to repay ten times as much as the poorest, and would even pay back more than the value of what they borrowed.”
“As long as students are well informed and not averse to the kind of debt involved – repayments of which only depend on one’s ability to pay – participation rates should not suffer.”Leave a comment