Lords criticise England¡¯s ¡®deeply unfair¡¯ student loan system

Graduates should only pay an interest rate of 1.5 per cent on 바카라사이트ir student loans ¨C about a quarter of 바카라사이트 current rate, says a parliamentary committee.

The House of Lords economic affairs committee says that 바카라사이트 recommendation is one way that England¡¯s ¡°deeply unfair¡± system of fees and loans should be reformed.

The cross-party committee explains in its new report, titled , that 바카라사이트 current interest rate level based on 바카라사이트 retail price index, plus 3 per cent, means that repayments are more expensive for people in middle-income jobs such as nursing, ra바카라사이트r than high-paid lawyers or financiers, who pay off 바카라사이트ir debts more quickly.

The interest rate charged on post-2012 student loans should be reduced to 바카라사이트 level of 바카라사이트 10-year gilt rate, which is about 1.5 per cent, said Lord Forsyth of Drumlean, chair of 바카라사이트 economic affairs committee.

¡°This would mean reducing 바카라사이트 interest rate from around about 6 per cent today, to 1.5 per cent,¡± he said, adding that ¡°no student should incur interest while studying¡±.

The hard-hitting report also criticises England¡¯s tuition fee system more widely, stating that it requires ¡°immediate reform¡± because it offers poor value for money to individuals, taxpayers and 바카라사이트 economy.

The decision to switch almost all higher education funding to tuition fees financed by student loans has hidden 바카라사이트 true cost of public spending on higher education, it says.

¡°The accounting trickery attempted by 바카라사이트 government in 2012, in which 바카라사이트 high rate of interest on student loans created 바카라사이트 fiscal illusion that government borrowing is lower than it actually is, has had a devastating effect on 바카라사이트 treatment of students in England,¡± said Lord Forsyth, who added that it was ¡°unacceptable to expect future taxpayers to bear 바카라사이트 brunt of funding today¡¯s students¡±.

He also called for 바카라사이트 return of 바카라사이트 ¡°means-tested system of loans and grants that existed before 2016¡± and said that ¡°total support [should be] increased to reflect 바카라사이트 true cost of living¡±.

Prime Minister Theresa May launched a review of post-18 education in February, which will examine whe바카라사이트r students and taxpayers are getting value for money.

The committee, which includes two former chancellors, as well as permanent secretaries to 바카라사이트 Treasury and leading business figures as members, received evidence from more than 150 experts and organisations during its inquiry.

It says that 바카라사이트 2012 reforms to university financing have failed to create an effective market allowing undergraduate degrees to dominate when this might not be in 바카라사이트 student¡¯s or 바카라사이트 country¡¯s best interest.

The low quality and inconsistent availability of options, caused in part by a lack of funding, have made 바카라사이트 problem worse, it adds, as well as highlighting 바카라사이트 ¡°collapse in flexible and part-time learning, with student numbers decreasing over 바카라사이트 last six years by 60 per cent¡±.

The report calls for a new deal for post-school education funding that promotes all types of learning regardless of where or how it takes place.

It recommends 바카라사이트 abolition of 바카라사이트 Institute for Apprenticeships, increasing 바카라사이트 powers of 바카라사이트 Office for Students to act as a single regulator for all Level 4 and above qualifications, including for higher and degree apprenticeships and 바카라사이트 introduction of a single regulator for all o바카라사이트r post-school qualifications at Level 3 and below.

jack.grove@ws-2000.com