A degree isn't worth it? Nearly 50% of graduates will not pay of their student loan

A news story published by the BBC this weekend stated that 45% of graduates will not be able to pay off their student loan: "if the figure reaches 48.6% experts calculate that the government will lose more money than it gained by increasing fees in England to £9,000 a year."

Student loan repayments are only deducted when a graduate begins to earn £21k p.a.

Universities minister David Willetts said the government had been reviewing its modelling on student loans and now estimated that about 45% would be written off - an increase from 40% six months ago.

Do you expect to earn £21k+ when you graduate? What's your career plan?

Do you envisage being able to pay off potentially £27k of student loan?

Is the university student loan system a gigantic money pit? Bring back the old system or follow a different model of funding?

What do you think?

Reply 1

Serendipitee

I think that so many people (particular from middle/upper class backgrounds) are shoehorned into going to uni "because it's the done thing", albeit possibly with a gap yah or two. At 17 or 18 it's unlikely you'll know exactly what you want to do with your life. But people are pushed into deciding a subject etc. nonetheless, a decision that has HUGE consequences.

Reply 2

Origami Bullets

This isn't about a degree not being worth it, this is about a government buggering up its figures.

Luckily, individual students don't need to worry about how much of their student loan they will pay back, as it doesn't affect their credit rating, ability to get a mortgage or anything like that.

We need to stop seeing education as a product bought by private customers, stay seeing it as a public good that benefits society as a whole, and fund it appropriately.

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