Quick question, what do people think the overall effect of the coalition changes to tuition fees were on these two examples?
- Teaching professional, starts five year course at 18 on max fees, max loan and no grant. Starts job at £22k and earns median salary for the profession through working life until retiring (peaks at £42k in early 40s).
- Manager/Director/Senior Official, starts five year course at 18 on max fees, max loan and no grant. Starts job at £22k and tracks 75th percentile of salary for the profession until retiring (peaks at £67k in late 40s).
The answer (and what people seem to think the answer is) is an example of why we got a horrendous kicking at the 2015 election, rather than just the massive one we expected. We’re crap at public relations and spinning stuff.
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The teacher. Old Labour system had them borrowing £42k, starting paying back at £15k threshold, no interest above inflation, and paying back a total of £37k (or 3.82% of their earnings over 30 years). The remainder is written off at 47, 25 years after they graduated. Coalition system had them borrowing £85,045, starting paying back at the £21k threshold, a grading interest above inflation from 0% at £21k earnings to 3% at £41k, end up paying back a total of £30k (or 3.14% of their earnings over 30 years). The remainder is written off at 52, 30 years after they graduated. Impact: pay back £7k / 0.68% less over 30 years
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The Manager. Old Labour system had them borrowing £42k, starting paying back at £15k threshold, no interest above inflation, and paying back a total of £53k (or 2.6% of their earnings over 30 years). They’d paid it off at age 39 before the 25 year write off kicked in. Coalition system had them borrowing £85,045, starting paying back at the £21k threshold, a grading interest above inflation from 0% at £21k earnings to 3% at £41k, end up paying back a total of £88k (or 5.46% of their earnings over 30 years). The remainder is written off at 52, 30 years after they graduated. Impact: pay back £46k / 2.86% more over 30 years
There’s two groups who suffered from the impact of the coalition changes. Those who go into higher paying professions, and those who the NUS and Labour convinced that they couldn’t afford to go to university because of this or rushed to attend under the old system. Made great simple headlines for them to pretend it wasn’t an improvement for worse off people, but they’ve potentially damaged the lives of people for a political point scoring exercise. Oddly enough, I suspect that senior members of the NUS will be going into those higher paying jobs. Not that I’m suggesting that would influence their actions.
We had the option to make the system fairer by voting for something which went against our manifesto text but had an effect to make things fairer, or of sticking to the letter of a commitment and leaving the poorest to contribute more than the richest. I still think it was the right decision.