The people who will not be repaying are those who don't earn very much after they've got their degree. Thus this is, obviously and clearly, a subsidy to those people who don't earn very much after they've got their degree, they're not paying back the full cost of having got the degree. The Institute of Fiscal Studies (IFS) has warned that there are “major issues” with the current system, as its research showed that most graduates will still be paying off student loans into their 50s. Those who earn more pay off their loans, those who earn little do not, it's a subsidy to those who don't earn much. There will be much chuntering about how three quarters of students will not repay their loans--but all this actually proves is that it's a subsidy system for the poorer graduate.

Source: Forbes July 05, 2017 07:41 UTC