"Nothing can be said to be certain, except death and taxes" (and student loan repayments): Vince Cable's graduate tax

Again, it’s been far too long since I last posted anything, with a combination of (initial) busy-ness and laziness being the reason. Though you’re used to me discussing the ins and outs of my musical preferences and the scene surrounding these, I’ve decided to branch out a little with this post.

Since my last post I’ve handed in all of my work, partied hard, enjoyed my last surf on golden beaches of the Gower, departed Swansea for good and received my hard-earned degree results. Now stuck in that horrible in-between phase following graduation from my undergraduate degree, but before embarking on the next step (an MA in Newspaper Journalism at City University in September), I have been forced to consider my options for the summer. I have two months ahead of me to fill as I wish, or I would if one thing wasn’t standing in my – the fact that I am flat broke. With this being the defining factor dictating the way I spend my summer, and indeed how I will survive whilst studying in London, I did the standard call around of pubs and restaurants in the area and luckily secured some hours at a local watering hole (it’s really nice, you should really check it out).

However, with me entering one of the most acclaimed courses in one of the most competitive industries in the world, I was well aware that on arrival to City in September others (both fellow students and lecturers alike) would be keen to know what media-related activity I had been up to within the summer recess. Therefore after more ring-arounds and numerous emails I managed to secure a week’s (unpaid) work experience at London’s Evening Standard this week.

Though I have not been particularly busy while undertaking the ‘experience’ (apart from one very eye-opening rainy afternoon spent in a rather deprived estate in Walthemstow) I have had plenty of time to scour the national newspapers and web for news. One story that jumped out at me, for obvious reasons, is Vince Cable’s proposed ‘graduate tax’ as an alternative to the current university tuition fee system.

While it has had its critics, I can’t help but think Cable may actually be onto something. Some have called it a simple “rebranding and remarketing” of the current system, but if we read into it further, I feel it is a fairer way of dealing with student debt and fees.

As I just mentioned, I studied at Swansea University and came out with a first class BA (Hons) in English and Media Studies, and I will start paying back my student loan as soon as I begin to earn more than £15,000 a year, the same threshold as every other graduate, regardless of my chosen career or expected future salary. The impression I get from the proposed graduate tax is that students will not be charged upfront, but the amount they pay will be taken from their wages depending on what and where they have studied and the following career they chose to pursue.

One friend of mine has recently completed an Aerospace Engineering degree at a well-respected university, gaining a first class mark, and has walked into a job which will see him starting on nearly £30,000, which I am not criticizing, as I could not be more happy for him, and I know he really did work hard to achieve everything he has done. However, when I eventually finish my MA (which doesn’t directly affect this discussion as that has to be privately funded) I will be lucky to be earning half of that, and that’s if I’m lucky enough to land myself a job, let alone one that pays at all.

Journalism is not renowned for its high pay, with wages averaging around £24k, but it is an industry where a degree still remains important, with a postgraduate certificate providing an even bigger helping hand. Therefore for me, personally, this idea of a graduate tax is far fairer than the standardised current student loan system. Surely you should only pay back the equivalent to what you have actually gained from your degree? The stories of people who can pay back their student loans within a couple of years angers me because I literally cannot see the light at the end of my tunnel of debt anytime in the near future, and this is because of the industry I will be entering.

While no one enjoys being taxed, and the rich will always complain when their hard earned money is taken away from them, I feel the graduate tax is actually a reasonable form of taxation based on fairness. I still maintain that students of the likes of engineering, business and accounting work no harder than students of any arts based subject, including English, history and politics, and this should be considered when setting prices and arranging repayments to universities. I understand that there is a vast difference between many disciplines studied at university, but to say one is worth more than another in terms of wages-paid is awfully condescending to those at the lower end of the salary ladder.

I’d be really interested to what any of you think, so please leave a comment if you have anything to say on the subject, whether you agree with me or not.