Student loans debate - fair game for students?

[numberwang]

Ka-pi96 said:

numberwang said:

These taxpayer-financed systems can work nicely but you need strict rationing to avoid cost explosion. A good example would be to limit taxpayer-funding to the top 1% or maybe 10% of the students with the best grades.

If people don't pay their loans, the principal amount will increase and increase over time. Some private lenders will resell the loans for a lower price to a speculator. Government loans will ultimately run a loss and the taxpayer has to pay the rest.

It is partially rationed. The government will pay the £9000 a year tuition fee as a loan for everyone to get their first degree. But the amount they pay in living expenses depends on their family income. ie. poorer people get more financial help from the government than rich people. Which I think makes a lot of sense. And they recently changed it so it's entirely loans and should theoretically be paid back so it's not like the government are just giving away taxpayer money for no return.

Is there any rationing based on grades, like a C-student does not get money? Do universities have limited seats for their curriculum?