Bluntly, the main motive for replacing the teaching grant by loans is an accounting trick. There is an apparent decline in public spending, but at the cost of distorting higher education policy … Thus the changes look like a dodgy [Private] Finance Initiative” – Barr, 2012
Well written piece on the loan scandal in Wonkhe by Nicholas Barr. In the language of the laymen, the government is fiddling the books, and dumping the costs on future taxpayers. It fiddles because it wants to mislead, for gain.
He goes on:
higher education finance has elements of a bubble. If I were a Vice-Chancellor, this aspect would give me sleepless nights.
Guarded language — fair enough — but it is not just a financial bubble. Let us just see how this year pans out.