C?mon Mumsnetters! Where are you???
I have NEVER posted on an online notice board before in my life! But I cannot believe the level of apathy surrounding this issue! An urgent campaign is needed!!! This is sooo much more important than the majority of posts on this site? This affects the future of our children!
I am sure I will be re-iterating the words of others as have only read half of the posts on this board, but we need to put our name to this campaign even if we cannot add fresh arguments! The majority of students campaigning will not be personally affected by the changes, yet they are arguing the unjustness of the system whereby your date of birth affects your life chances. Your kids are affected ? why aren?t we marching and flooding the inboxes of politicians? The vote is next Thursday ? C?MON!!!
When this proposed legislation comes into force, it will have been 18 years since I started at University?. I cannot believe how much will have altered in the space of a generation. I had free tuition, and my parents part-funded my living costs, which was supplemented by student loans. The student loan I was on had an interest rate equal to the level of inflation, and was not repayable until I was earning a ?decent? salary ? the equivalent of 27,048 per annum today. On leaving university, the combination of student loan and student overdraft amounted to 6k. 2 years later following some imprudence (I was young!) the cost of getting a car (to enable me to work) and setting up home, my unsecured debt was 12k ? this level made it hard to sleep at night and was equal to my annual salary net of tax.
The pooling of our resources, household austerity measures and the booming housing market ?saved? myself and DH (also with 12k of debt) from this situation. We were able to cancel our debts by releasing equity on moving home, so we could then ?start again?. The experience left us with a horror of debt and since then the only debt we have is our mortgage - we have never since lived beyond our means (unlike the government of this country).
Yes, the country is in a terrible state, yes, we have to ensure that we don?t continue to live beyond our means, but within this civilised society that we have, we have to hold onto the values that we hold dear. Value judgements have to be made on what needs funding and what doesn?t.
I accept that the current cost of providing University Education is too high ? this could be reduced by the government deciding which courses ?add value? and therefore should attract funding and which don?t. If an individual wishes to study a course and has achieved the necessary grades, there should be minimal fees to pay. The children are the future: those that are motivated to work hard, better themselves and go to university are far more likely to add value to society and contribute to our future economy (through their skills, their innovations and purchasing power) than those who do not. They will also repay their debt to society by not being a drain on the economy (like those on benefits) and are highly likely to become higher rate taxpayers in the future ? the historic mechanism for those who have benefited from University being able to repay their debt to society.
The initial group of students affected are facing massive youth unemployment (graduates and non-graduates alike), massive tuition fees, and those lucky politicians who have their own properties (if not 2!) suggest that they should not be aspiring to own their own home. If they want a place of their own, rather than live with mum and dad, or be at the mercy of the rent of private landlords, they face having to gather together an initial deposit of around 30k.
I don?t fit within the majority, having had an unplanned pregnancy in my early 20s, but the majority of university educated people of my generation have waited until they are 30 to have their first child in order that they have some financial stability. The future generations will never have the luxury of financial stability!
Most people with an unsecured debt of 45k with no assets would take out an IVA or go bankrupt to discharge it ? it is a horrifying amount to have hanging over your head. A couple would have double this hanging over them ? this is more than most people?s mortgage! I also don?t buy the argument that they do not have to consider it as it will only be payable when they are earning 21k. This will sit on their credit ratings for the rest of their lives. It may not be payable in the first few years of work, but will come into effect when they are trying to set up home and plan their families. When are they supposed to save for their children?s futures? When are they supposed to plan for their retirement?? If they hit the higher rate tax band they will be hit with a double whammy ? their interest rate increases in conjunction with the higher tax level. What is wrong with increasing the higher rate tax so that all who have the capability to pay do so?
In summary: My suggestion would be to reduce the number of places at University and remove the courses that are not likely to be of much value to those taking them. These courses should accept people on merit and have nominal (or preferably no) fees. Those attending University are already suffering the opportunity cost of not being in employment for 3 years and their living expenses?. If the country?s books cannot be made to balance through any other mechanism ? the percentage band of higher rate tax should be raised slightly, so that all who have the ability to pay can do so.
If we wish the country to become economically strong again ? it does not make sense to stunt the growth of those who have the ability to save it!