It is at this time of year again! Thousands of students studying for A levels, GCSEs and T levels are getting their results around now, and proving a generation is working hard to shake off the effects of the pandemic and build their futures.
There is a lot written about these exams and the effects of lockdown. We would all do well to read it as this is another example of how the pandemic has widened some social divides.
For those with their A level results, many will be heading off to university. Those new and existing students will, no doubt, be seeing university vice chancellors suggesting that their fees should rise to around a staggering £24,000 a year.
Tony Blair introduced university fees of £3,500, and these were increased by the Lib Dems during the coalition years to £6,000, or £9,000 if the university could demonstrate good social mobility credentials. Of course, they all did so the current £9,250 is the norm. But they top up income from overseas students who pay the so-called commercially viable £24,000 a year.
Student loans are in fact a graduate tax. They are called loans so they can be collected outside the UK if a graduate emigrates. The idea was that graduates are more productive, so we need more to drive economic growth. But much of the financial benefit goes to the graduate, so the argument went, so why not recharge them for the cost of their degree.
But the whole system is skewed the wrong way. A graduate whose degree is valued by the economy will repay their loan relatively quickly. But one who’s degree is less valued will struggle to make an income sufficient to reach the repayment levels and so the state picks up the bill. The system as designed is one that requires taxpayers to pay for economically unwanted training.
Universities are, to all intents and purposes, businesses. They sell courses and the government provides the hire purchase agreement and underwriting. They are increasingly selling more courses to overseas students – to make more money - and now seek to force the government to compete on behalf of UK students for places in the UK.
Everyone should be given the opportunity to go to university. I have always regretted not going myself. But we must be able to think up a better system than the one we have now.