So the student loans system, of which I was one of the first
members, begins to unravel. Who would have thought that the government lending
money, with no guarantee of payback, at low rates of interest, and increasing
the threshold for repayment, would result in the government losing out? Perhaps
somebody with a GCSE in maths? I’m pleased Labour has started to address the
problem with today’s announcement that we’re pledging to cut tuition fees to
£6,000.
But this isn’t a long term solution to the crisis in
funding, and Labour knows it. Now the idea of a ‘graduate tax’ is gaining
traction as a way of paying for our world-beating education system, and a real
alternative to loaning money on economically obtuse terms. I must confess a
layer of bemusement covering my steadfast opposition to this idea – as somebody
who is fortunate enough to pay back a significant sum out of his pay packet
every month, the current system already feels like a graduate tax to me.
Despite the macro-jiggery-pokery of changing a loan to a tax, there does feel
to be something deeply unjust about me paying the same amount for a university education I’ve barely finished as O do to a pension
that I will likely barely claim, while property-owning baby-boomer colleagues prepare for a
well-earned retirement, founded on modest incomes built by university education
they’ve never directly paid for. A graduate tax couldn’t practically find every
graduate working today, and so its arbitrary start point will simply perpetuate
this frustrating and unjust system of taxing those graduates who can afford it
least.