The worst thing about the whole UK universities fiasco - worse even than devaluing academic degrees by turning them into a Caucus Race to keep kids off the dole, and worse even then leaving an entire generation in hock for the privilege of massaging the employment statistics - is that it's another credit crunch waiting to happen.
At the root of the subprime mortgage crisis was a whole load of unscrupulous lenders giving mortgages to people who couldn't pay them back, based on the assumption that house prices would keep rising and so even if the property was repossessed the lender wouldn't lose out.
At the root of the student fees/loans scenario is a whole infrastructure and economic sector (from tutors through admissions employees, university suppliers, down to cleaners and buy to let landlords in university towns etc etc etc) that depends for its existence on money, funded by loans, made to a load of people on the assumption that their future earnings will enable them to pay it back. But with so many of them studying, the value of a degree isn't going up. So tons of them won't be able to pay it back. So what the loans structure is doing is lining up a mountain of bad debt, which - eventually - will become too expensive to sustain. And it doesn't matter how 'arm's length' the Student Loans Company appears to be, it's as much a quango as Network Rail and has the government by the short and curlies to exactly the same extent. So they'll have to write off the debt, but in response to the outcry they'll stop offering loans to all comers, and we'll be left with astronomical tuition fees and degrees only open to those who can pay.
At that point there suddenly won't be enough students. And then the FE sector will have to shrink. And this will be appallingly painful to an entire swathe of this country's economy: imagine Liverpool, Sheffield or Reading with 60% fewer students (all with loan money to burn), and then imagine the effect on cafes, housing market, grocers, pubs, cinemas, etc etc etc.
If there's something truly scandalous about the coalition's response it's not the fact that they're proposing to charge students more to study. It's that rather than tackling the longer-term unsustainability of the UK's bloated and commoditised further education sector they're continuing with the pretense that all these degrees - rather than just the highly academic few - are worth £27,000 and passing the grisly job of hacking the sector down to its rightful size along to a future Government.
sorry, ranting again 