Quote:
Originally Posted by nomadking
Do they need collateral for student loans at the moment?  The money has to be found up-front by the lenders at the moment, so again no difference to now. The main difference is that more of the outlay of taxpayers money will be repaid in the future. |
How do you work that out?
At the moment, the student borrows approx 3k pa for tuition fees, and 3k for accommodation. If the fees go up to 6k pa, the student will need to borrow 6k for tuition fees, and 3k for accommodation; HMG has said they will only start reducing the block grant if the fees go over 6k pa.
So, if the Government (who will be the main lender to students, because who else would loan 27k to an 18 year old with no collateral), will have to pay out 33% more up front for each student, with no reduction in the block grant payment to the University.
right back atcha......
