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Conscious investment

A report by the Institute for Fiscal Studies provides evidence for a fees cut or a move to variable levels.

When asked to explain a 45 per cent non-repayment rate for student loans, the former universities minister Jo Johnson would say that it was a “conscious investment” in the skills base of the UK. However, it is a funny kind of investment to fund those least likely to earn enough to be able to repay their student loan.

A report out today from the Institute for Fiscal Studies—Where Is the Money Going? Estimating government spending on different university degrees—crunches the data on graduate earnings to show which subjects and institutions have the largest “conscious investment” on the part of the government. That is to say, which subjects and universities lead to the greatest non-repayment of loans.

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