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AIBU to think that it would have been fairer to introduce a graduate tax than increase tuition fees

112 replies

Tryingtryingandtrying · 04/11/2024 20:12

As it stands most graduates effectively pay a graduate tax for most of their working lives. Exceptions to this are those who do not earn enough, those who pay themselves minimum wage out of their own businesses and those whose parents are wealthy enough to pay fees up front as well as all living costs. A graduate tax would mean everyone who benefits from university education contributes, instead of those on middle incomes paying the most of all.

Yabu - it was better to increase tuition fees
Yanbu - a graduate tax would be a fairer way to fund university study

OP posts:
295bkq · 04/11/2024 20:58

Income tax ensures that those who earn more pay more in tax. There’s no more to it.

Tax graduates and they’ll go overseas.

TheNiftyPlumLeader · 04/11/2024 20:58

Etincelle · 04/11/2024 20:46

In other countries higher education is considered to be a good thing and "making the right choices". It's just here that staying in education is considered to be a negative thing.

Higher education and going away to university aren't the same thing.
In other countries not only are a large proportion of students weeded out by tough first year exams. There are other ways to get higher education including technical colleges (which can later be made up to a degree). Bear in mind NVQ Level 6 qualications include many things that aren't 'degrees' but they have to meet the same standards.

In the UK, not only do students live away from home, students failing is seen as an issue on part of the university. They are customers who have 'bought' a product, and expect what they e paid for hence everything is watered down.

University should be for the academic. Everyone else goes a different route. That doesn't mean that the latter is any lesser.

BTW anybody who wants to go to university definitely can.. even if they get D's in the A-levels for their chosen subject. We have one of the most educated working age populations in Europe. Has it translated to increased productivity? Nope. Does the general public demonstrate a good propensity for critical thinking? Nope. So what benefit have the degrees brought?

Even something like a FE college where students can do a year close to home would save loads.

September1013 · 04/11/2024 20:58

How would a graduate tax work for international students?

I think the current student loan system is better but the interest rates are way too high and penalise people who earn less and can’t pay it off as quickly. The answer would be to go back to charging minimal interest so that it’s fairer for all.

BIossomtoes · 04/11/2024 20:57

Mlanket · 04/11/2024 20:53

They’d have to stop demanding if fewer people had them.

Fewer people in the UK may have them but what about workers from other countries?

What about them? There are so many jobs now being done by graduates where a degree is unnecessary. Employers would just have to stop demanding graduates if they were no longer a glut on the market.

Etincelle · 04/11/2024 20:57

Etincelle · 04/11/2024 20:53

Courses at polytechnics and colleges of higher education were funded also. No tuition fees and a maintenance grant was awarded, same as for universities.

Probably Art Schools and Drama Schools too.

BadForBusiness · 04/11/2024 20:56

Tryingtryingandtrying · 04/11/2024 20:39

The issue is that wealthy families are able to pay the least for university education by paying the fees straight up and avoiding the repayments and interest for their children. Some people pay many many thousands more than others and not because they earn the most money

People who pay up front for their tuition don't pay the least: they pay less than someone who takes out a loan and pays it back over a period of decades, but they pay much more than people who work in very low wage professions or become long term SAHPs, or acquire disabilities that prevent them from earning, or move abroad.

If you asked the government whether they'd rather everyone pay 9,250 up front or whether they'd rather everyone take out the loan I know what they'd pick.

And not all people from wealthy families go on to become high earners.

Icanttakethisanymore · 04/11/2024 20:55

TooBigForMyBoots · 04/11/2024 20:40

That would cost money. So the colleges would lose. The point in raising the fees is to raise funds for the university.

What is the point of a costly bureaucratic delay?

I’m not saying it’s a good idea particularly, I’m just saying it is obviously possible to fund universities through taxation. It used to be done, it could be done again.

Etincelle · 04/11/2024 20:53

Xenia · 04/11/2024 20:32

I would rather only 15% of teenagers went to university as was the case when I went and that we had fewer universities. Given I have funded 5 children at university without loans I would be pretty cross if we all had in effect to double pay

Courses at polytechnics and colleges of higher education were funded also. No tuition fees and a maintenance grant was awarded, same as for universities.

Mlanket · 04/11/2024 20:53

They’d have to stop demanding if fewer people had them.

Fewer people in the UK may have them but what about workers from other countries?

TooBigForMyBoots · 04/11/2024 20:52

Tryingtryingandtrying · 04/11/2024 20:42

I am sure there would be a way to ring-fence graduate tax if they wanted to, or to guarantee funding in someway

Not only would they need to ring fence the graduate tax, they then need to allocate it to the individual college attended by the tax payer. And some will have gone to multiple universities.

Paying it in fees is the easiest and cheapest way of guaranteeing the funding straight away.

Mlanket · 04/11/2024 20:50

Perhaps the employers need to change?

valid argument as to why they should but they won’t.

BIossomtoes · 04/11/2024 20:49

Mlanket · 04/11/2024 20:40

I would rather only 15% of teenagers went to university as was the case when I went and that we had fewer universities.

unrealistic in a world where so many employers demand degrees.

They’d have to stop demanding if fewer people had them. 🤷‍♀️

MissScarletInTheBallroom · 04/11/2024 20:49

Dearg · 04/11/2024 20:46

You do understand that a banking and finance are a significant part of the UK’s GDP?
You, personally, may not rate their profession, but they do contribute.

I'm not saying they don't contribute, I'm saying it's unfair that people who just scrape into the higher rate tax bracket end up paying more for their education than people who are on six figures by the time they're 25.

EuclidianGeometryFan · 04/11/2024 20:49

Mlanket · 04/11/2024 20:40

I would rather only 15% of teenagers went to university as was the case when I went and that we had fewer universities.

unrealistic in a world where so many employers demand degrees.

Perhaps the employers need to change?

Degrees really are not necessary or relevant to a lot of careers. They now do the job that A' levels and similar used to do - just signal to the employer that you have some brains and are not completely lazy.

I think society would work better if only 5% of people went to university, and the norm was to get a good technical or practical qualification whilst working from age 18, basically apprenticeships for everyone.

Dearg · 04/11/2024 20:46

MissScarletInTheBallroom · 04/11/2024 20:25

YANBU.

It's not fair that investment bankers and hedge fund managers end up paying less for their university education than engineers and civil servants.

You do understand that a banking and finance are a significant part of the UK’s GDP?
You, personally, may not rate their profession, but they do contribute.

Etincelle · 04/11/2024 20:46

Ytcsghisn · 04/11/2024 20:19

No it would be stupid to have a graduate tax. Most taxes are designed to be paid by people who make the right choices. Further encouraging people to continue to making bad choices and have someone else pick up the bill.

People studying Mickey Mouse degrees at university will never earn enough to pay the graduate tax. While those studying in demand and worthwhile subjects will continue to pay for their everyone else’s hobby degrees.

If you want to go to university and study nonsense so-called degrees, pay for it upfront. Or don’t go.

In other countries higher education is considered to be a good thing and "making the right choices". It's just here that staying in education is considered to be a negative thing.

Tryingtryingandtrying · 04/11/2024 20:45

@MaryBeardsShoes I was replying to someone else without clarifying what they mean which i should have done. My understanding would be courses with little chance of changing life chances, very few hours per week of study?

OP posts:
Tryingtryingandtrying · 04/11/2024 20:43

I suppose another way to look at it would be to ask who would be put off going to uni if a graduate tax was put in place? Who is put off going to uni now with student loan system?

OP posts:
MaryBeardsShoes · 04/11/2024 20:43

Tryingtryingandtrying · 04/11/2024 20:21

But people studying mickey mouse degrees never pay back student loan either

What do you class as a “Mickey mouse” degree.

Tryingtryingandtrying · 04/11/2024 20:42

I am sure there would be a way to ring-fence graduate tax if they wanted to, or to guarantee funding in someway

OP posts:
Tryingtryingandtrying · 04/11/2024 20:40

@MidnightPatrol can you not avoid loan repayments by leaving the country too?

OP posts:
Mlanket · 04/11/2024 20:40

I would rather only 15% of teenagers went to university as was the case when I went and that we had fewer universities.

unrealistic in a world where so many employers demand degrees.

TooBigForMyBoots · 04/11/2024 20:40

Icanttakethisanymore · 04/11/2024 20:30

Yes but the tax could be used to funds the universities in the OPs suggestion.

That would cost money. So the colleges would lose. The point in raising the fees is to raise funds for the university.

What is the point of a costly bureaucratic delay?

Tryingtryingandtrying · 04/11/2024 20:39

The issue is that wealthy families are able to pay the least for university education by paying the fees straight up and avoiding the repayments and interest for their children. Some people pay many many thousands more than others and not because they earn the most money

OP posts:
Frowningprovidence · 04/11/2024 20:35

I dont like the idea of a graduate tax as the current system does have a supposed end point and I don't really see why one graduate has to pay for another graduate.

I also think the current system means the university a student picks gets the funding. With a tax, politicians could chose different priorities for funding. Which I know could mean a paternalistic limiting of choice away from bad choices, but I dont think that always works.

They could also just decide that the 1% tax is now a 5%, 20 years down the line.

And if it's like other taxes, they could end up not ring fencing it anyway.

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