UK loans review set to dispel ‘fiscal illusions’ and hike deficit

Applause, and about time! The accounting treatment of these 'loans' was always a lie; calling them 'loans' was always a lie. I say 'lie' advisedly: the accounting treatment, and calling them 'loans'-- when they lack the most basic characteristic of a loan, a requirement to repay the sum loaned-- were designed to obscure the truth. Once the truth is declared: as the last paragraph of the article points out, we see that, from the public-accounting, deficit-reduction point of view, there is not much difference between the current system and "direct public funding". We can then openly debate the other factors on which we should decide which system is best. For example: Does the taxpayer want students who believe they are paying for their education and thus believe they are 'consumers' who should be given whatever they want-- even if it undermines their education and the public good-- or does the taxpayer want students who know the public are paying for them and the public will not tolerate students wasting our money?

If the interest rates on student loans were not so exhorbitant there might be more chance of paying them back! But the funadmental point remains: is the government prepared to invest in the future, by ensuring that there is a steady stream of well-educated open and enquiring minds amongst the citizens of this country?