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    I am curious to see behind the veil of cuts, and the impact that raising student loans will have. Will the raised student loans make up the short fall in university funding, if so, then surely that's totally counterproductive since the government as a whole won't be saving any money whatsoever, indeed with the plans of scrapping any remaining debt (yes it is a debt however you might want to play it, it is money owed, with conditions) after 30 years, is it not a massive risk that this might actually raise the costs incurred by government?
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    (Original post by Magnum Opus)
    I am curious to see behind the veil of cuts, and the impact that raising student loans will have. Will the raised student loans make up the short fall in university funding, if so, then surely that's totally counterproductive since the government as a whole won't be saving any money whatsoever, indeed with the plans of scrapping any remaining debt (yes it is a debt however you might want to play it, it is money owed, with conditions) after 30 years, is it not a massive risk that this might actually raise the costs incurred by government?
    Loans make up the shortfall, so in the short term (as in in September 2012), they give out the same amount of money.

    However in the long term, people pay back more of that money than they do now, so the overall outlay is lower as they've recouped more.

    The debt being wiped out after 30years doesn't matter as they've already given out all the money in 2012, they're not giving out any more. They're just not getting it all back - but the point is that they get more back than they do with the current system.
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    (Original post by angelmxxx)
    Loans make up the shortfall, so in the short term (as in in September 2012), they give out the same amount of money.

    However in the long term, people pay back more of that money than they do now, so the overall outlay is lower as they've recouped more.

    The debt being wiped out after 30years doesn't matter as they've already given out all the money in 2012, they're not giving out any more. They're just not getting it all back - but the point is that they get more back than they do with the current system.
    I'm not convinced they will be getting more back. People are paying off their student loans well into their 30s, and these are people who didn't have the burden of tuition fees!
 
 
 
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