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Paid through taxes, not a graduate tax.
To be 100% honest, I think the proposed system of repayment is pretty great. I wish I had something similar on my £60k Canadian student debt. Instead it's treated like any other bill. The moment I'm 6 months out of school, interest and repayments begin.
I am not happy with the cuts, however, and I'm not happy with the middle-class knee-jerk reactionism to students getting pissed off.