Should students be charged interest on their loans whilst they are still at university?

Being a post-graduate, I should feel some sort of sympathy for students today, who’re effectively gambling on their educational achievements to get that dream job, in an insecure global market-place that guarantees uncertainties – but I don’t - different times require different approaches. As that applies to every house-hold, students should not be exempt.

Times really have changed since I proudly walked up the student aisle to grab my certificate of papery honours. The whooping was deafening from my fellow students. I made sure I inhaled as I greeted Ralph Steadman (who was handing out the certificates) in a bid to hide my alcoholic laced breath. I honestly felt that my 98% attendance rate was a worthy form of payment to the course lecturers. I was that far up my own anus. Surprisingly my head managed to stay on my shoulders due to the ego-inflation and for months thereafter I reminded everyone in my vicinity of my achievements. Naturally, I lost several acquaintances (obviously due to my excessive boastfulness that distinctly whiffed of my own anus lubricant).The world of cheap beer, uncomplicated intercourse, and derriere nuzzling lectures, was great but wasn’t reality. So, I veer to the notion that students require a reality-check when it comes to accrued interest on student loans. If the interest became void throughout the duration of the students education – you can bet that the lost payment will be paid elsewhere by SME’s or even worse; the treasury’s pawns – i.e. ‘Us’.

Where I do have sympathy with students is regarding the 9,000 GBP tuition hike this next year under a coalition administration ironically thumbed-up by the Liberal Democrats. Nick Clegg duped the students by promising them the earth during the 2010 election campaign – in return students swooned towards the Lib Dem leader’s rhetoric; still mesmerised by his eloquent tones and happy yellow tie, they took their naivety to the booth. Clegg who became the election’s ‘king-maker’ then subsequently stabbed each one of them in the back, twisting the knife viciously without any thought of their well-being. Not only did Clegg fail his core voter, he has also failed in sustaining student entrepreneur funding. He failed the ambitious poverty stricken student as well by abolishing the EMA. Clegg is also heavily implemented in the new intern scheme that is designed to exploit student’s aspirations who want actual paid employment; the scheme has failed due to loopholes that allow the employer free labour. By the year 2015, an estimated 70 million is being cut for universities bursaries compared to 2009-10 funding. So, the gravy train is slowing considerably towards educational institutions. Overall, our current administration has disdain for students. They’ve treated them with contempt and given them no financial respite; this is where I do sympathise.

When it comes to commercial loans or the SLC, the financial market is tangible to interest trends, Mervin King, and market behaviour. There is no escaping that fact - However, hard reality is - no hierarchy is exempt from these monetary equations. Fairness isn’t part of the picture when austerity programs are excreted all over the education institutions. In two years of education cuts, Clegg and the government is smearing excrement on student’s prospects; marring the employment landscape for future generations and ultimately derailing the potentials of our battle weary students. This effectively is chaining-up the student from the age of eighteen into a form of mortgage before they’ve got a big toe hovering over the bottom rung of the property ladder.

It was once guaranteed that a student educated to degree level would earn 100,000 GBP (throughout their career) more than their counter-part who didn’t opt to go to university. The gap has significantly closed by 45% in the past fifteen years; years which were mostly offering an abundant job market. In 2015, like the polar ice caps, the gap will disappear alarmingly - allowing only the wealthy to be able to afford the fees and subsequent living costs. The only mild respite the modern day student has is the fees will only be paid if the student’s salary exceeds 21,000 (per annum) and an extra 3% is set to be paid if the student’s salary reaches 41,000 (per annum). One main factor the government seems to forget whenever trying to explain the fundamentals of education fees is that the fees are wiped off after thirty years if the student fails to earn 20K. In real terms the student will be nearing his/her fifty second Birthday for that occurrence to arise – claiming that the fees will be wiped off after three decades of active work-life if you don’t earn 21K, are words that aren’t apparent in lecture theatres circulating the UK or political circles for different reasons. Lecturers install confidence within their students so they see success as their only option and for politicians, the fees being wiped off after thirty years is rhetorical patter; a placebo, or mild sweetener to help with the avalanche of austerity. It’ll never be implemented, heaven forbid.

In conclusion the disgrace falls predominantly on Nick Clegg and his Lib Dem colleagues; they’ve used their core voter as a whipping horse – although I agree students should pay accrued loan interest while studying, I feel our current administration is unceremoniously cutting off vital funding where it is most required and when you see the bigger picture: it is incredibly concerning when lengthily austerity programs inflicts a damnation on a generation of students; and for that I blame Nick Clegg and the coalition, not whether loan interest should be accrued while a student is studying. A focus is required for the bigger picture, in this instance.©1st2thebar2012

"This is a short-sighted, unimaginative and short-term government with the vision of a bat and the antennae of a mollusc." (David Blunkett, a former education secretary in Tony Blair's government quote)