Graduate tax

[Christopher]

Currently, UK university students pay an annual rate for their tuition - an amount which is currently capped at £3,225 in England. This is given to the student during their university lives through a loan by the UK government - it is only paid back once the new graduate earns at least £15k per annum. Universities are wanting to raise tuition fees to compete with the international market and help maintin their budgets - this would mean greater debts for students and may discourage those from lower social-economic backgrounds from applying to university.

The UK Government is currently debating on whether to introduce a graduate tax system. This will come into effect once the student graduates, with the amount one pays in tax being a reflection of the income they earn - so, a doctor would pay more in tax than say a social worker. At the time of writing, it is not yet established whether the graduate would pay this throughout their working life.

What are you views on this and do you think this is a fair way of dealing with the financial issues regarding the cost of courses.

References

BBC News. http://www.bbc.co.uk/news/education-10643198 [accessed 17 July 2010]

[meccameadoc]

Well, I dont know why no ones replied to this because its quite important to all of us. Coming from a lower socio economic group than your average med school applicant I would say the tax system works best. A doctor can usually afford to pay more tax, as can a lawyer, as they are most likely on a higher wage than a social worker. But after reading baout this in various places its quite unclear how this would work. Would they pay the tax even if they were not in employment?. Do they pay it while at uni?..so if anyone can shed light on that I would much appreciate it . However, all those who go to uni should be equal, and to be honest equality is supported more by the current system, as everyone pays when they get to 15k a year. I still support the tax idea though, in principle.