We keep hearing about how the youth is the future and how the country should make means for them. Yet how far the country is willing to go. In some countries, they have developed ways to help students through Loans and getting the private sector to help with. Yet students are still aspected to pay back the money. Most students are still are unemployed. The government is planning to cut the earnings threshold at which graduates begin repaying student loans in a bid to save the Treasury money and push more young people towards cheaper vocational education. Although this maybe a good idea many are not working.
Chancellor Rishi Sunak wants to overhaul student financing in his spending review ahead of the next budget reflecting Treasury concerns that the taxpayer is footing too great a burden of funding university courses.
Currently graduates start to pay back student loans when their salary hits £27,295, but ministers are looking to reduce that figure. “That’s the plan,” said one minister.
In 2019 recommended the threshold be lowered to £23,000, median non-graduate earnings at the time, and the Higher Education Policy Institute think-tank this year modelled a cut to less than £20,000.
No final decisions on the new level have been taken, but one minister said a £20,000 threshold was considered to be “a bit low”.
A figure of £23,000 could save the Treasury just under £2bn a year, according to the Institute for Fiscal Studies, a think-tank, while a graduate earning the current threshold would have their take-home pay cut by more than £800 annually.
The Department for Education said the student loan system was “designed to ensure all those with the talent and desire to attend higher education are able to do so, whilst ensuring that the cost of higher education is fairly distributed between graduates and the taxpayer”.
It also said it was continuing to consider “the recommendations made by the Augar panel carefully”. Augar also recommended cutting the cap on annual tuition fees from £9,250 to £7,500 — such a cut would be welcomed by students.
Whitehall officials said the proposal to cut the salary threshold for repaying loans would give a boost to the government’s plans to revolutionise technical and vocational training in the UK, a key part of Boris Johnson’s levelling up agenda.
The government believes too many students are racking up debts studying “soft” three-year university courses in arts and social sciences, and is looking to funnel more 18 year olds towards technical training that is cheaper and will pay a faster economic dividend
Can this happen in south Africa, can it be possible. Former president Mr Jacob Zuma, introduced the idea of free education which is still not seen today. More needs to be done for all students around the world to get education.
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