UK Student Loans

Politicians tell us that “It is only fair that those who have benefited from a university education should contribute to its cost” . If you  believe this then surely those who benefited more, in terms of income, should pay proportionately  more.  This would be a proper graduate tax!

With a proper graduate tax, there would be

• No need for exorbitant  tuition fees, personal graduate debt, and the cost of running the Student Loan Company (currently £300 million / year).  
• No psychological stress, shame or stigma associated with being a “debtor”
• No stressful and potentially flawed decisions to repay debt early
•  A simple decision - going to university will cost me x% of income over threshold
•  A simple voting issue - this political party promises to increase/reduce graduate tax by y%

A proper graduate tax  levied of just over 5% on the 2012+ student/graduate cohorts, would raise almost

the same revenue as the current Plan 5 Student loan scheme.  A 6% graduate tax would raise more than the

current Plan 5 scheme.

This is a  30 year tax with thresholds rising in line with average earnings with a starting threshold at the

current Plan 2 threshold around  £29300

Don’t take my word for it!  Check it our for yourselves by visiting the IFS student finance calculator

Watch this video to see how to use the IFS student finance calculator

Here’s the bombshell !

A proper graduate tax in which ALL

2015+ Graduates paid the tax

for the FULL 30 years  would

reduce the payback rate

above threshold from

 9% to  5%!