Comment Do it right. (Score 1) 1259
The total amount of money involved, for all students in the country, is not huge. A couple of billion perhaps?
Why doesn't the government just stick that money in a pot, and issue the loans themselves? They can charge a notional low rate of interest, and set favourable rates of return. This is, after all, investing in education, and in the country as a whole, why try to gouge the rates up and punish people for trying to better themselves.
The UK government has a good system (or did 15 years ago, when I graduated). I could:
- choose how much to borrow (up to a limit, but I could borrow less)
- got a good rate of interest (1.2% or 1.3% I think)
- payments started a year after graduating
- didn't have to repay if I was earning around minimum wage (£12000 a year I think)
- could pay it off early if I wanted to
At the end of it, the government gets their money back (plus interest), from almost everyone, and they end up with a more educated workforce. Why exactly would you want to cripple that?