Student Loan Repayment Plans Debate
Full Debate: Read Full DebateDepartment: Department for Education
Tim Roca
Main Page: Tim Roca (Labour - Macclesfield)Department Debates - View all Tim Roca's debates with the Department for Education
(1 day, 6 hours ago)
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Tim Roca (Macclesfield) (Lab)
It is an uncomfortable truth that England now has the most expensive public university system in the world. The Institute for Fiscal Studies has told us that, while the taxpayer underwrites 45% of its cost, students and graduates cover 55%, which represents a profound shift in how we fund higher education in this country. A formative moment for me and for many others was watching the Liberal Democrats entering into coalition with the Conservatives in 2010 and not abolishing tuition fees, but in fact trebling them. We were told that that was progressive, but to a generation of young people, it felt like a gross betrayal.
It is fair to say that graduates have a graduate premium, with earnings potentially a third higher than for non-graduates, but averages conceal as much as they reveal. The IFS has shown that those in the middle earnings distribution repay the highest share of their lifetime earnings. As hon. Members have said, many people have no prospect of paying off their loans at all. That is not a progressive system, particularly when we are asking them to think about saving for a home, starting a family and contributing to society.
We need to think about the public good that higher education is, and the fantastic contribution that graduates make to our society and economy. We need to look again at the structure and the thresholds, particularly the threshold freezes, and ask whether those in the middle are carrying too much of the burden and whether the balance between the contributions of the taxpayer and of the graduate has drifted too far.