Debt hike for teachers

PGCE students to pay 6.1% interest on loans from the day that their courses starts. That’s not what you want to hear, but what the government has announced as likely from September if there isn’t a loud and sustained public outcry starting at the teacher association conferences this Easter. If the same rate of interest also applies to those on the school-based fee routes as well as undergraduates training to be a teacher then BREXIT is seriously bad news for trainee teachers. The reason is the hike in inflation to 3.1% last month, an increase partly fuelled by the post referendum slump in Sterling as a currency. Add to the inflation increase the 3% fee on top that the government charges plus the fact that interest starts accumulating as soon as the loan is taken out and we are talking serious money and an annual rate of 6.1%.

Career changers would almost certainlybe better off raising an extra mortgage on their house than paying these rates and younger intending teachers not eligible for bursaries should probably consult their parents to see whether they will do the same. Those starting work as teachers in September may find that their take home pay is below what it would have been in earlier years due to the rise in interest rates.

Whether intending teachers wanting to work in state funded schools should be expected to pay for their training is a moot point. Readers of this blog will know I don’t believe any trainee teachers should pay for the privilege of training to be a teacher. Few others, except would-be journalists and possibly fashion models pay for their training; until recently nurses also benefited from a scheme created by Frank Dobson when Blair’s Labour government first introduced tuition fees. The scheme for graduate trainee teachers, introduced in the early 2000s, was expensive, but fair to all trainees. The present situation is confusing, and at these rates of interest and a public sector annual pay rise of probably just one per cent, potentially off-putting to trainees in many subjects. Whether it deters the best or just those most likely to find other work, I leave others to judge.

One solution would be to employ all graduate trainees as part of a national trainee pool that also provided for their pension contributions and with an agreement to pay-off their undergraduate students loans at the rate of 25% of the outstanding interest and principle from the end of year two of teaching. They would be employed form the central pool by schools, so that the schools didn’t have the extra cost of writing off the loans for new teachers. This should be a central cost if loans are to continue. By involving the State directly in the employment of teachers it would allow the DfE to understand directly what was happening with both recruitment and retention. It would also make the DfE responsible for the consequences of mistakes with the Teacher Supply Model. Some PE and maths trainees won’t find jobs in teaching this year, but will still be faced by the increase in interest rates on their loans.

For maths trainees, with bursaries, the pain will be slight: for PE teachers this is punishment for choosing the wrong subject to train in as a teacher.