Leave The Banks Out Of Student Loans
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First he blamed feminism for the the unemployment of working class males (not lack of social mobility and jobs), then he said universities would end up “looking rather silly” if they rushed to charge £9,000 fees (which of course a growing number are) and now David Willetts, the Minister of State for Universities and Science is, according to The Observer, in secret talks with banks to fund student loans. With so many universities charging the maximum fee of £9,000 a year the cost of the loans to students to cover these fees will have grown massively. Under the new system students won't have to start paying back loans until earning £21,000 which may not be for a long time, if at all. The delay of repayment is one of the only positives of the current system for students, especially important now graduate unemployment is at its highest level for over a decade. But with such massive loans now needed for fees, not to mention maintenance, waiting for repayments could be a problem. It isn't likely that banks are going to want to loan to students with such little chance of them being able to pay it back any time soon. They are according to The Observer article, only likely to be on board if someone, most likely the university, is going to be relied on to take responsibility for the loan if the student can't pay it back. Taking into account funding cuts to universities, this can only have a negative effect on education.
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