UK Student Loans

So a graduate tax of just over 5% for 30 years targeted on the 2012+ cohorts  would raise the same revenue as

Plan 5 student loan scheme.  Most graduates would benefit by paying 5% not 9% over threshold for 30 years. The top 10% of graduate earners would pay more for a longer time but at 5+% not 9%

A better, fairer system would be an “all age graduate tax (AAGT), in which all UK residents of working age, educated

at a UK university would pay a graduate tax.

Personally I nearly vomit every time I hear a politician - from Jo Johnson to Rachel Reeves - telling me that “it’s only fair graduates should contribute to the costs of university education”, when they themselves got one for free.

 They never want to put their hands into their own pockets!

In 2011, Million+/London Economics - leading economists and HE specialists - led by Professor Ebdon and Pam Tatlow, advised a AAGT of around 1% -2.5% as a better option than the student loan system

Read the full paper here

In 2017, Professor Green and Mason of UCL Institute of Educate said the same thing to a parliamentary committee.

This time at  2-3% !  

(Each lost opportunity costs more in a higher rate as older pre-2000

UK graduates leave the workforce)

Read the full paper here

For all the detail on  graduate tax as an alternative to student loans watch Student Loan Farce  (part 3)