Original post by TimmonaPortellaYou're right about the problem, as far as I'm concerned.
I don't agree that we might as well make it a straight graduate tax system. With all my issues with the present system, there is, at least, a limit to the amount you can pay. If you go out and get an excellent job with high pay, you can actually clear your debt. Under a graduate tax, the amount you can pay back is boundless.
I don't think anyone should be liable to pay an unlimited amount back for the finite service of education for the duration of a degree course. I also think that, if this were the case, a lot of top earning graduates would simply leave. The highest earning graduates are also the most globally mobile.
There needs to be some interest, because there is a cost to the government not having the money for the period in which the student has it. The government has to borrow that money, with interest payments attached, in the first place. There is also obviously a credit risk, but I'd accept that the taxpayer should shoulder some of that particular burden. Overall the interest rate should probably be lower.
My only real point here is that the threshold for repayment should be lower, so that more people in careers such as teaching actually pay off their debt.
If you want specific incentives for people to become teachers I'm not necessarily opposed to that, but in general the threshold should be lower.