Does university add up?

It is sad, but no surprise, that this year has seen a significant drop in the number of young people applying to university. Many will have had to think twice about saddling themselves with massive amounts of debt for decades to come. As the parent of a young person considering this momentous step I was naturally concerned but have almost been persuaded by the ‘money saving expert’,  Martin Lewis,  and I recommend anyone in a similar position to read his views at http://www.moneysavingexpert.com/students/

However, I am wavering having read the report of the Higher Education Policy Institute about how badly the government miscalculated the costings of higher education when it slashed funding and allowed fees of up to £9000 per year. As so often with governments, the assumptions were optimistic, starting with the belief that most universities would NOT charge the full 9K and continuing with wishful thinking about future earnings of graduates and therefore how many will repay (or even overpay) their loans. After 30 years, the debt is written off if it still remains and it now seems more than expected will fail to earn enough to pay it off.

Read the BBC coverage and, if you’ve nothing else to bother you,  worry about the tax time-bomb waiting about thirty years down the road.

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