Fear of 12% interest on student loans will put many off university, top Tories warn

Education: Secondary / Sun 22nd May 2022 am31 10:29am

SENIOR Tories are sounding the alarm over the “outrageous” interest rates to be applied to student loans later this year, after warnings that some graduates will soon be hit with rates of up to 12% reports The Guardian.

In the latest sign of party unease over the effects of high inflation, former ministers and MPs are calling for the government to step in and prevent the increases. They say some young people who have the ability to take up a university place will be put off by the idea of repaying a large, expensive debt for years.

It is understood that ministers are now examining the issue of the temporary interest spike, which could see some higher-earning graduates facing thousands of pounds in extra debt. Two former Tory ministers who used to oversee university policy told the Observer that they believed action was needed. One, former business secretary and universities minister Greg Clark, said the high rates risked deterring graduates from getting the skills that were badly needed.

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2 Comments for Fear of 12% interest on student loans will put many off university, top Tories warn:

2022-05-22 23:21:11

Universities are essentially business that exploit students, as shown during COVID the product is generally poor and has become a "right of passage " all, whilst running courses that don't provide a guaranteed job other than leading to working as delivery drivers. Universities divert students away from FE and industry based qualifications: hence the massive skills gap in the UK. It's time that the idea that one has to go live away from home to gain a quality education: the two are completely unrelated: the Universities are a middle and upper class version of the Eatonian public school system, rather like ever more costly finishing schools that support an old boy ruling class network. The unversities cash in on undergraduate students to pay for research, this isn't right. They also support a whole industry that builds thousands of poor quality student accommodation and charge top prices costing students and the public purse billions to feed private profits to developers and unversities. Another effect not often recognised, is that universities suck talented people out of home towns to which these people do not return, this is to the detriment of such towns and to important family support networks. The OU is a beacon of excellence and despite being recognised globally is undervalued and under funded: what we should be doing is extending the OU principle to cover both FE and HE courses. There's very few courses that could not be accessed online and supported via local lifelong learning centres and colleges with Summer schools where appropriate. It's time the system is completely changed and brought into the 21st Century: currently it's not fit for purpose: had it been so then we wouldn't have such a massive skills gap in the uk.

2022-05-22 23:22:56

The loan system is just another means of profit being made off the backs of students, families and the public purse.

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