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Anyone think raising the fees might actually be bad for the government? Watch

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    Well, for starters, the universities will still be providing the same services as before so the funding for the universities will have to be overall the same.

    Although the money for that is now coming from the students as apposed to the government, more students will have to take out loans to be able to pay the tuition fees.

    This means that for short term the government will be paying more than it was before, but rather than it going to the universities, it will be going to the students.

    Furthermore, the cap after graduation for repaying the loan is now set at a £21,000 salary. This means that fewer people will actually be paying back their loans as the amount of people earning over £21,000 will be far lower than those earning £15,000.

    But on the other side, the ones who earn over £21,000 will be paying 2-3 times more than they would have been before.

    Also to take into consideration are those who will have their loan scrapped as they wont reach the salary cap for 30 years. The amount which the government loses from that sector will be doubled or even tripled.

    So overall the question is, with there being quite a few negative sides to this change for the government, would they outweigh what they save from the cuts?
    Any thoughts?
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    I agree with your thoughts. I could write a proper post but i'm tired :lol: so i'm just going to say I agree.
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    When you look at it in context, the government will do very well out of this over the next 30 years or so. There's a huge number of people in education now, the vast majority of whom in the coming years will pay back their fees in full with interest.

    With inflation, very few graduates will end up earning less than 21k, far too few for the government to worry bout. The constant income of all the other people's interest will far outweigh the cost of those who slip through the net.
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    (Original post by garethDT)
    When you look at it in context, the government will do very well out of this over the next 30 years or so. There's a huge number of people in education now, the vast majority of whom in the coming years will pay back their fees in full with interest.

    With inflation, very few graduates will end up earning less than 21k, far too few for the government to worry bout. The constant income of all the other people's interest will far outweigh the cost of those who slip through the net.
    Hmmm, i do agree with you there. But what about the short term losses that the government will suffer from giving so many extra loans? I mean there will be few people who will be able to afford £9,000 off the bat.
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    Tbh most projections about the fees are made on so many assumptions that we are just going to have to wait a few years to get an accurate picture of the effects of the fee rise
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    Never mind the Government, it's bad for the country as a whole.
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    (Original post by rylit91)
    Never mind the Government, it's bad for the country as a whole.
    Well if it's bad for the Government it's bad for the country
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    (Original post by Syox)
    Well if it's bad for the Government it's bad for the country
    not always...:mmm:
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    (Original post by rylit91)
    not always...:mmm:
    okay okay! Assume everytime i said Government I said country then, I would change it but i'm going to sleep! Gnight
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    (Original post by Syox)
    Well, for starters, the universities will still be providing the same services as before so the funding for the universities will have to be overall the same.
    The universities will get more money. The government will be able to directly subsidise less, but it'll pay more for the loans. It roughly evens out in the short term and breaks positive in the long term.

    So overall the question is, with there being quite a few negative sides to this change for the government, would they outweigh what they save from the cuts?
    Any thoughts?
    No. You can see the model used in the Browne report, the most critical analysis of the Browne report is the HEPI analysis which argues the Browne model isn't conservative enough, however HEPI own model indicates that the new model cost the government about the same as the current model. Which isn't great but isn't disastrous either.
 
 
 
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