I used student loans. I struggled but I paid back what I borrowed plus the interest.
Without my degree, I suspect that I wouldn't be enjoying a salary that reaches the 40% tax band so, in my mind, having paid off my loans, the government is already taxing the 'extra benefit' of my degree by taking a larger proportion of my income than they would have been able to had I _not_ graduated.
I'd be interested to know if it is planned for students who start a degree but who _don't_ graduate (i.e. drop out) still have to pay graduate tax? I've looked but I can't find a clear answer on this. If not, there would be less incentive to complete a degree if it 'got a bit hard'.
Will the government consider charging a tax on 'college fees' for non-compulsory A Levels and Highers to pay back the 'extra benefit' students see from these qualifications?
"University of Stirling - Stirling, Scotland - Stirling, United Kingdom (1993 - 1996)"
The Loans system changed in 1998, you were on the old mortgage repayment loans. Loans are now paid back by paying 9% of any earnings above £15K. It is indistinguishable from a graduate tax, except that a) those that drop out or fail still pay and b) you pay until you've paid off the lump sum.
I have no idea what any plans would be; essentially, the Govt does not have a policy on this yet, it's allowing Labour's Browne review to complete, but ensuring that something that had been ruled out is now not ruled out.
Personally, I'd rather all degrees were free and anyone that got good enough results could go. But the money isn't there.
Fees were introduced at the same time the loan scheme was changed (1998, again), and have been changed & substantially increased, in England, since. They're not charged in Scotland because the LDs had that as a term of forming coalition in the first Scottish Parliament.
So, I restate my question. What's the difference between a graduate tax and the current loans sytem, that's paid back as an extra income tax? Why is one acceptable,t he other not?
Some ignorance on my part then. Certainly a 2.5% graduate tax will probably look more attractive than a 9% swipe on anything above 15k, in most cases, especially on a new graduates paycheck.
I think the biggest differences between the loans that are 'taxed' directly from paypackets and the new graduate tax is that, with loans, an individual pays back exactly what _they_ owe, it _can_ be paid early and once it is paid off, it is paid off.
With graduate tax, if by some chance an individual managed to turn their degree into a successful career, they'd end up contributing enough tax to pay their own debt... and then continue to be taxed.
I am pretty much in agreement. Given the massive level loans now are (my unpaid loan is £12K, that's on the low end of post '98 graduates), the repayment system you had would've been unworkable.
To be honest, I suspect Vince is angling to get through a "graduate tax" as a rebrand of the current loans scheme, including a tapering off once you've paid your fees &c. Although how the amount assessed would be calculated is anyone's guess.
Sorting out student finance is not something I'd want to do. Sorting it out then trying to persuade the Tories of the scheme to get it through is going to be an absolute bugger.
Start from scratch, easy, but unfortunately it's a right mess and there's no money to spare.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif){kind=small}
no subject
What do you think of the current loand repayment system, which is administered as a tax on earnings on graduates?
no subject
Without my degree, I suspect that I wouldn't be enjoying a salary that reaches the 40% tax band so, in my mind, having paid off my loans, the government is already taxing the 'extra benefit' of my degree by taking a larger proportion of my income than they would have been able to had I _not_ graduated.
I'd be interested to know if it is planned for students who start a degree but who _don't_ graduate (i.e. drop out) still have to pay graduate tax? I've looked but I can't find a clear answer on this. If not, there would be less incentive to complete a degree if it 'got a bit hard'.
Will the government consider charging a tax on 'college fees' for non-compulsory A Levels and Highers to pay back the 'extra benefit' students see from these qualifications?
no subject
The Loans system changed in 1998, you were on the old mortgage repayment loans. Loans are now paid back by paying 9% of any earnings above £15K. It is indistinguishable from a graduate tax, except that a) those that drop out or fail still pay and b) you pay until you've paid off the lump sum.
I have no idea what any plans would be; essentially, the Govt does not have a policy on this yet, it's allowing Labour's Browne review to complete, but ensuring that something that had been ruled out is now not ruled out.
Personally, I'd rather all degrees were free and anyone that got good enough results could go. But the money isn't there.
Fees were introduced at the same time the loan scheme was changed (1998, again), and have been changed & substantially increased, in England, since. They're not charged in Scotland because the LDs had that as a term of forming coalition in the first Scottish Parliament.
So, I restate my question. What's the difference between a graduate tax and the current loans sytem, that's paid back as an extra income tax? Why is one acceptable,t he other not?
no subject
I think the biggest differences between the loans that are 'taxed' directly from paypackets and the new graduate tax is that, with loans, an individual pays back exactly what _they_ owe, it _can_ be paid early and once it is paid off, it is paid off.
With graduate tax, if by some chance an individual managed to turn their degree into a successful career, they'd end up contributing enough tax to pay their own debt... and then continue to be taxed.
That's unfair in my mind.
no subject
I am pretty much in agreement. Given the massive level loans now are (my unpaid loan is £12K, that's on the low end of post '98 graduates), the repayment system you had would've been unworkable.
To be honest, I suspect Vince is angling to get through a "graduate tax" as a rebrand of the current loans scheme, including a tapering off once you've paid your fees &c. Although how the amount assessed would be calculated is anyone's guess.
Sorting out student finance is not something I'd want to do. Sorting it out then trying to persuade the Tories of the scheme to get it through is going to be an absolute bugger.
Start from scratch, easy, but unfortunately it's a right mess and there's no money to spare.