This is the system we have in the UK. The crucial differences between having it as an extra tier of income tax of 9% above £21k (going to £25k soon) are
1) Those that don't directly benefit from university (say you become an electrician) don't have to pay
2) Those that earn millions don't pay it - they pay their £50k loan off (40% of that is living costs), but then those people tend to avoid income tax anyway
3) Those that emmigrate still pay it
All in all it seems fine, but it's used as a political football by those that want to tax builders to pay for the education of stockbrokers (Labour)
There are a large number of people who will pay back multiples of their original loan amount (pay back ~£90k over 30 years on a £40k loan) if they earn moderately high salaries to start with and progress to high salaries within the last 15 years or so of their 30 year loan lifetime.
The extortionate interest keeps a middle tier of professionals paying well after they've cleared their original loan amount.
Not to mention - I have no doubt 30 years will be changed to 35, and then 40, when the day to write off the debt actually comes.
To pay back £90k would involve paying back £3k a year, or earning an average £33k over the threshold - currently that's £54k well into the top 10% of earners.
Currently income tax between £50k and £60k is 60% due to the wothdrqwal of child benefit, student loan increase this to 69%.
Personally I think we tax income - especially earned income, far too high. We have millionaire pensioners paying hardly any tax at all, yet people paying 70% who are unable to buy a house. Sickening, but it's not tuition fees to blame.
