THE: Letter to the Editor, Win-win way to square the funding circle
…-rate subsidy and those loans that weren’t repaid. If a loan is repaid over, say, 15 years, the subsidy alone is more than 20 per cent. The period of subsidy will be longer now because fewer graduates will find well paid jobs this summer. But if it bought out loans with a discount, the Government would avoid the subsidy – and generate cash now, which is its prime concern. It might be argued that some graduates would repay their loans without disco…
