Something I don't get about the student fee rises...
Something I don't get about the student fee rises...
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Discussion

glazbagun

Original Poster:

15,376 posts

227 months

Saturday 11th December 2010
quotequote all
We're in trouble with our borrowing and need to cut borrowing and state costs. So we cut funding to universities.

To make up for any shortfall, we allow universities to increase their course fees, in some cases up to £9kPA.

Which we give students loans to pay for.

Aren't we still borrowing the same (assuming a closed system) as we would have anyway? IE- we won't see any difference in the actual cost to the state of universities for decades.

mrmr96

13,736 posts

234 months

Saturday 11th December 2010
quotequote all
glazbagun said:
We're in trouble with our borrowing and need to cut borrowing and state costs. So we cut funding to universities.

To make up for any shortfall, we allow universities to increase their course fees, in some cases up to £9kPA.

Which we give students loans to pay for.

Aren't we still borrowing the same (assuming a closed system) as we would have anyway? IE- we won't see any difference in the actual cost to the state of universities for decades.
Yes but the debt now sits with the student, not the gov. (i.e. repaid out of their pocket not general taxes.)

Elysium

16,851 posts

217 months

Saturday 11th December 2010
quotequote all
In accounting terms the student loans are an asset rather than a debt.