Does anyone know if student loans actually saved tax payers money over the old system?

DannyKFW

Giving that the student loans were meant to save tax payers for footing the bill, and that actually only 17.5 % pay off the loan in full - has this system actually saved money? My guess is that it has not. That we may be paying more than before. It seems to me only the Student Loan Company and related organisations make money from this policy.

kaMelo

Originally student loans were nothing more than a magic trick. The money used to fund student loans was cooked up from thin air and never appeared on the books as public spending so cost the taxpayer nothing at all
When you paid back the loan, SLC pocketed the interest whilst the rest of the money disappeared into the black hole from where it came never to be seen again.  

This has however changed since the ONS decided to include student loans within public spending.

poppy10_2

It doesn't save the taxpayer any money, but it generates healthy profits for the private corporations to whom the debt was sold

https://www.bbc.co.uk/news/business-25084744

Thrugelmir

You'd hope the education people receive would enable them to obtain a decent career and therefore contribute more in general taxation to the Exchequer. 

kaMelo

poppy10_2 said:

It doesn't save the taxpayer any money, but it generates healthy profits for the private corporations to whom the debt was sold

https://www.bbc.co.uk/news/business-25084744

The loans were sold by SLC, the money paid by the private corporations went into the public purse, therefore saving taxpayers money..

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