I disagree I think the principal benefit of free uni is to the lower and middle income levels. At the moment even OU fees are putting off poorer people.
I think encouraging debt among the population is a terrible idea anyway.
Some benefit goes to the rich, but they’re a small proportion of the population. (Depending now you define rich). And uni for them is easy either way.
This MN post on uni fees makes some very good points:
This brings me so much anger to this day, and I took out my student loans from back in 2012 when 9k tuition fees were introduced.
I did a 3 year undergrad and I left with a 50k debt. I can live with my 50k student loan. Fine, the government wants to pass the cost on to students (not that I agree you they should be doing that) but fine.
But the interest rates are so unbelievably outrageous I have no NO CLUE how they've gotten away with completely shafting the whole (especially poorer) student population.
Do people realise the interest rate on student loans is 3% + RPI? It's currently at 6.6%
6.6% interest this year on a 50k loan. That's at least £3300.
I earn a £45k salary and I still won't cover the interest this year. I have been earning a fairly decent salary since graduating and I have never covered the yearly interest.
My outstanding debt goes up and up each year even though I'm paying them thousands in the year. I now owe them £55k after giving them around £6k since I graduated.
They will carry on taking 9% of my salary over 25k and 9% of all my bonuses for the next 30 years.
Anyone who took out max loan (aka from a poorer background) and ended up breaking the barrier through to a better life is fucked over the most.
The wealthier families get away mostly scott free.
I think it's absolutely outrageous, and I'm not sure people realise how fucked over we're actually getting with interest rates. I have a debt that I can never even start to pay off. I will pay them probably double what I initially owed them over the next 30 years.
Honourable mention: they also charge max interest rates on your outstanding loan for the duration of your study.