If people go to University, take out student loans to do so and end up repaying them, then clearly they can do whatever they want in life and it’s nobody’s business what they do.
If however we have a situation where universities continue to offer low quality degree courses that don’t materially improve career prospects, and students end up dissatisfied with the teaching they’ve received, then personally I think that the burden this places on the public finances should be acknowledged.
The figures involved are huge. The stock of outstanding student loans has now passed £200bn, and the figure is projected to hit £460bn in another twenty years’ time. If the default rate on these loans is running at 30/40%, it places an enormous burden on tax payers.
Should we just ignore this cost, or actually try to raise standards so that the default rate declines? Is it fair to expect people who choose not to go to university to pick up the tab for a failure or refusal to tackle continued poor standards across universities?
The argument against tackling the issue appears to be the broader benefit a higher number of graduates offers, even if they do not move into highly paid jobs. But if taxpayers have to eventually pick up the tab for a c40% default rate on a loan book that is heading towards £500bn, then that’s going to impose an enormous burden on the public finances and expenditure in other areas will necessarily be lower as a result.