In light of current public debate on the fairness of student loans, I would like to suggest an option that we can raise with the both the Student Union at UWE and the National Union of Students.
Although the best option for students would be free higher education, I understand that this will not be accepted by the current government - let alone any. However, I instead believe that we should lobby for interest-free student loans.
Graduates have been struggling to even touch the loan due to the amount of interest accrued, and as a result, they're just about covering the interest payments each month. This has led to many graduates having their loans written off due to being unable to fully pay them after 30 years. This is by no means a new phenomenon, rather this is an intentional design choice of the student loan system, as seen in the following quotes below from a transcript on the UK Parliament Website (linked here: UK Parliament Website_
As stated in 2018 by Jo Johnson, the then Minister of State for Universities, Science, Research and Innovation, in oral evidence to the Committee:
"The fact that debt is written off is a conscious, deliberate policy decision by the Government. It is not a symptom of a broken student finance system; it is a deliberate investment in the skills base of the country, which delivers benefits for individual students and for society at large"
Lord Willetts - the then-Minister of State for Science and Universities when the current (as of 2018) student loan system was introduced - echoed the following point in his evidence to the Committee:
"The 83 per cent of students, on one estimate, that may not repay in full—that is a deliberate policy decision, and it is very important that it is a policy decision that is taken democratically and that you can make alterations either way."
As seen in the following quotes, graduates are being set up to fail on their loans. Student loans are causing anxiety for so many graduates, who fear the debt. However, the government in 2018 expected 83% of them to be written off - this is more likely to be higher in 2026, eight years after this was published.
This intentional policy is unfair on students and the taxpayer. The government can help students in a better way by not charging interest on the loan and allow the students with the dignity of paying their debts in full. Here are the reasons why I believe interest-free loans are a more sustainable option.
1. Unlike the current interest-based system, students are able to make payments with peace of mind that their debt is reducing, rather than increasing back.
2. As a result of no interest, more talented students are likely to attend university - covering the capacity deficit of international students that Universities are facing.
3. This increase in students, as per Jo Johnson's quote, will improve the skills base of the UK - which is the ambition of the current government.
4. More students and graduates are able to pay off their loans, reducing the financial strain on the taxpayer.
We need to act now as there are discussions to implement a graduate tax - this would be a devastating policy for anyone considering higher education, as well as current and previous students.
Although I understand that such change is in the hands of government and decision makers beyond our University alone, I believe that if various Student Unions across the UK and the NUS were to take a unanimous stance, this would pressure Parliament to make a decision.
My proposals to the SU and its Presidency are as follows:
1. To take a stance in favour of interest-free student loans and embed this the policy of the Student Union.
2. Organise a discussion forum where students can lobby local MPs on this matter - preferably on campus in a lecture hall, with the presence of local and national media.
3. Organise letter-writing campaigns to NUS officials to adopt this stance.
4. Bring up this solution at the next NUS conference.
4. Liaise with local SUs, i.e. Bristol and bath, to organise a large-scale lobbying force.