Cameron adapts British study tax
In 2011, British Prime Minister David Cameron announced a newera of higher education on the island. Competition betweenuniversities should be increased and budgets cut while studentsfinally understand studying as an investment that pays a return intheir future career. To realize this, the government
Meanwhile, different measures were introduced to make sure thatlow income students are not scared off getting a degree byexpensive tuition fee rates. Cameron launched
Early repayment penalty abandoned
The latter now proves especially controversial. Cameron’s leftliberal coalition partner wanted to impose a penalty for lendersthat repay their debt early. This way it would be avoided thatwealthy students substantially decrease their interest payments bypaying back their loan in one lump-sum after graduation.
In the end, it appears that Cameron’s Conservatives got theirway since there will be no such penalty installed after all. Thismay both boost the government’s treasure in the short-term andsignificantly benefit students from rich economic backgrounds.
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