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Student DebtIn this report I will examine the issue of student debt and its impact on society

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Student Debt In this report I will examine the issue of student debt and its impact on society. I will also describe the student support that will be available from 2006 under Government proposals. The Government The Government say that real-interest-free loans, repayable if and when the student is earning a good wage and at a level that is easily affordable means that this should not be a problem. The loans are only repayable once the graduate is earning over �15,000 a year. Repayments are then 9% of income and if the graduates earnings drop below �15,000, repayments stop immediately. It bears no resemblance to debt associated with credit cards or even bank loans. The Government believes that ensuring students have enough to live on while they are at university is essential, in order to assure that everybody, including lower classes, can still get the highest education. The principles on which the student funding system is based are: � Students must have sufficient funds to meet their basic living costs while studying, provided through a combination of loans, grants, and parental support. ...read more.


But average total expenditure was �6,897 in the 2002/03 academic year. � Total average expenditure has risen by 15% since 1998/99 indicating a substantial rise in students' standard of living. However, is it essential that the students standard of living should be so high? � Living expenses made up the majority of student expenditure and had risen by 20%. The largest increases were related to spending on non-study related travel and personal expenditure. Financial Support The following table compares the proposed system from 2006/07 with the existing system for full time students. ISSUE SYSTEM EFFECT Paying Fees No parent or student will have to pay anything upfront or during university A middle class family will no longer have to find �3375 to pay for their children's 3 year course Fee Remission Students will get help with the first �1,125 worth of fees on the same basis as current system Around 60% of fulltime students will continue to get the same levels of fee support. Grants From September 2004 up to �1k for poorest students (under �21k a year) ...read more.


Paying back the debt Graduates Salary Weekly income Weekly payments �12,000 �231 �0 �15,000 �288 �0 �18,000 �346 �5.19 �20,000 �385 �8.65 �30,000 �577 �25.96 Conclusion To conclude, I believe that, although the debt incurred by a student during their higher education years can become quite a large sum, it is more than worth it in the long run. Not only will graduates be more likely to get higher paid jobs, but they will be more likely to get a comfortable job in a sector that they are relaxed and comfortable at working in. The debt will not have to be repaid until the graduate can afford it, so it will not be detrimental to the students future. All in all, it will inevitably lead to the student getting a very good job in the field that they are interested in working in so, if they are to work for fifty years, it has got to be worth paying for the three or more years that it takes to gain the qualifications to enable you to do that. It is a small fee for a very comfortable future. ?? ?? ?? ?? Dwain Harris ...read more.

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