Student loan interest - an absolute disgrace (1 Viewer)

[robbiekeane]

Student loan interest rate to hit 12% in England

The rate will rise this autumn, the Institute for Fiscal Studies says, before falling back next March.

www.bbc.com

And I thought the US was bad with interest rates as high as 8% on government loans.

Education only for the rich - fuck this bunch of elitist pricks they will never ever get voted in again. Country is going downhill quick

 

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[rob9872]

Student loan interest rate to hit 12% in England

The rate will rise this autumn, the Institute for Fiscal Studies says, before falling back next March.

www.bbc.com

And I thought the US was bad with interest rates as high as 8% on government loans.

Education only for the rich - fuck this bunch of elitist pricks they will never ever get voted in again. Country is going downhill quick

Would these be the same student loans that were first implemented under New Labour by any chance?

 

[Evo1883]

Student loan interest rate to hit 12% in England

The rate will rise this autumn, the Institute for Fiscal Studies says, before falling back next March.

www.bbc.com

And I thought the US was bad with interest rates as high as 8% on government loans.

Education only for the rich - fuck this bunch of elitist pricks they will never ever get voted in again. Country is going downhill quick

Sadly , as the thatcher era proved , they will be voted in again and again..

This country loves to be shafted

 

[NorthernWisdom]

Student loan interest rate to hit 12% in England

The rate will rise this autumn, the Institute for Fiscal Studies says, before falling back next March.

www.bbc.com

And I thought the US was bad with interest rates as high as 8% on government loans.

Education only for the rich - fuck this bunch of elitist pricks they will never ever get voted in again. Country is going downhill quick

I'm sure when loans came in they were sold as being linked to inflation before being sold off, but can't be bothered to check!

 

[Grendel]

https://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/

 

[CJ_covblaze]

Sadly , as the thatcher era proved , they will be voted in again and again..

This country loves to be shafted

We do have a habit of sticking with the status quo. We’ve had seven Prime Ministers since 1979. Only two have been voted out at an election.

 

[Grendel]

The student loan is a tax on future earnings - it’s not prohibitive to the poor

 

[SBAndy]

The student loan is a tax on future earnings - it’s not prohibitive to the poor

Hate to say it, but he’s right. The interest rate increase is understandably unpalatable (and it’ll no doubt mean some who had a chance of paying off their loans now won’t) but in real terms for the majority of people it’ll make zero difference.

 

[SBAndy]

I'm sure when loans came in they were sold as being linked to inflation before being sold off, but can't be bothered to check!

The article states that interest is calculated as 3% above RPI - that’s why it’s hitting 12%.

 

[Sky_Blue_Dreamer]

The student loan is a tax on future earnings - it’s not prohibitive to the poor

But it's hardly enticing those worse off in society into higher education.

Of course when you were uni age, tuition was free, grants were available and signing on was possible. As usual, anything that becomes available to the 'lower orders' that was once the preserve of the privileged, they make sure they either put them off or fleece them at every given opportunity.

 

[Grendel]

But it's hardly enticing those worse off in society into higher education.

Of course when you were uni age, tuition was free, grants were available and signing on was possible. As usual, anything that becomes available to the 'lower orders' that was once the preserve of the privileged, they make sure they either put them off or fleece them at every given opportunity.

Most won't have to pay it back so what is the block for people going?

When I was uni age only a small percentage of people went - The blair push created this as its unaffordable and not productive

This even by your standards is nonsense

 

[chiefdave]

Would these be the same student loans that were first implemented under New Labour by any chance?

The scheme was changed in 2012 which was when interest above RPI was introduced.

 

[Grendel]

The scheme was changed in 2012 which was when interest above RPI was introduced.

The likes of Martin Lewis deem this a much fairer system and it is as my oldest fell under the old scheme and is paying whereas under the new would not be

 

[Sky_Blue_Dreamer]

Most won't have to pay it back so what is the block for people going?

When I was uni age only a small percentage of people went - The blair push created this as its unaffordable and not productive

This even by your standards is nonsense

But if they're not going to earn enough to pay back the loans, what's their incentive for going onto the course in the first place? It's a waste of time and effort.

While I agree the expansion of HE has created a lot of 'fluff' courses that have reduced the worth and prestige of a degree and thus made a system that cannot be funded by the public purse, the desire to get a greater amount of talented people from poorer backgrounds into HE was a good one. It's Ok only having a small percentage in HE, provided they're the most worthy regardless of background and those that do not have their worth recognised.

It's a totally different argument, but giving more value to technical/vocational qualifications and getting HE places on merit, not background is the way forward.

The first is achievable with a change in perception from the top down; the second much harder as those in state education are automatically disadvantaged as public school kids are basically spoon fed to give the right answers whereas state school they largely have to get left to their own devices while teachers deal with unruly kids in overfilled classes.

 

[Sky_Blue_Dreamer]

The likes of Martin Lewis deem this a much fairer system and it is as my oldest fell under the old scheme and is paying whereas under the new would not be

So the choice is remain a low earner so you don't pay or earn more money and we'll take loads off you.

 

[Grendel]

But if they're not going to earn enough to pay back the loans, what's their incentive for going onto the course in the first place? It's a waste of time and effort.

So they want to pay the loans? Lol

Take it up with Labour. Is Starmer going to return to free education?

When were tuition fees introduced and which party started them?

Hint: It's probably not who you think

metro.co.uk

 

[Grendel]

So the choice is remain a low earner so you don't pay or earn more money and we'll take loads off you.

The Labour policy was to take it off you even if you were a low earner WTF are you on about?

 

[Sky Blue Pete]

The student loan is a tax on future earnings - it’s not prohibitive to the poor

He’s right it doesn’t make the interest right much like sisu charging high interest on their loans but it’s not prohibitive to the poor

 

[Grendel]

He’s right it doesn’t make the interest right much like sisu charging high interest on their loans but it’s not prohibitive to the poor

The old system was far far worse and prohibitive

 

[NorthernWisdom]

The article states that interest is calculated as 3% above RPI - that’s why it’s hitting 12%.

I could've sworn originally it was guaranteed not to go above inflation. Doesn't bother me personally as I paid mine off(!) but I'd still like to check my memory without being bothered to Google.

Ah, there's my answer!

The scheme was changed in 2012 which was when interest above RPI was introduced.

 

[NorthernWisdom]

The likes of Martin Lewis deem this a much fairer system and it is as my oldest fell under the old scheme and is paying whereas under the new would not be

Thought Martin Lewis was spawn of Satan?

 

[Grendel]

Thought Martin Lewis was spawn of Satan?

When the multi millionaire tree hugger pretentious leftie says something positive about a Tory policy kind of shuts the argument down

 

[Sky_Blue_Dreamer]

The Labour policy was to take it off you even if you were a low earner WTF are you on about?

The interest levels were much lower. Admittedly if a person was a lower earner then it would take them longer to pay back and so interest would accrue anyway. Although the amount of time before debts were written off was slightly shorter (and current plans suggest it will be increased again to 40 years from graduation)

Student loans should never be above that of the basic borrowing rate at the time it was borrowed. IMO it should be interest free and just the capital should be paid back.

 

[Grendel]

The interest levels were much lower. Admittedly if a person was a lower earner then it would take them longer to pay back and so interest would accrue anyway. Although the amount of time before debts were written off was slightly shorter (and current plans suggest it will be increased again to 40 years from graduation)

Student loans should never be above that of the basic borrowing rate at the time it was borrowed. IMO it should be interest free and just the capital should be paid back.

No one agrees with you - give up

 

[Sky_Blue_Dreamer]

The Labour policy was to take it off you even if you were a low earner WTF are you on about?

Let's say someone is a low earner for the first ten years after graduating. They're not paying it back, but it's accruing interest.

After that time they start earning money, so now are liable to pay it back. Only now it's a much bigger debt because of the interest and eats into that higher pay, and will continue to do so for many, many years. It's basically designed to hold back those that can't afford to fund higher education without financial help. Rich daddy paying everything for you - you've not got an issue as you've got no debt.

It's basically a similar system as SISU use for us. Which you think is grossly unfair and puts the club at a huge disadvantage.

 

[Grendel]

Let's say someone is a low earner for the first ten years after graduating. They're not paying it back, but it's accruing interest.

After that time they start earning money, so now are liable to pay it back. Only now it's a much bigger debt because of the interest and eats into that higher pay, and will continue to do so for many, many years. It's basically designed to hold back those that can't afford to fund higher education without financial help. Rich daddy paying everything for you - you've not got an issue as you've got no debt.

It's basically a similar system as SISU use for us. Which you think is grossly unfair and puts the club at a huge disadvantage.

You are losing it

 

[Sky_Blue_Dreamer]

You are losing it

You never had it to lose.

 

[Grendel]

You never had it to lose.

 

[SBAndy]

Let's say someone is a low earner for the first ten years after graduating. They're not paying it back, but it's accruing interest.

After that time they start earning money, so now are liable to pay it back. Only now it's a much bigger debt because of the interest and eats into that higher pay, and will continue to do so for many, many years. It's basically designed to hold back those that can't afford to fund higher education without financial help. Rich daddy paying everything for you - you've not got an issue as you've got no debt.

It's basically a similar system as SISU use for us. Which you think is grossly unfair and puts the club at a huge disadvantage.

You’ve not quite got this - the debt only remains for 30 years post-graduation and repayments are fixed at 9% above the income threshold. So if I graduated with a debt of £50k and was in a job below that income threshold for 29 years, then moved to a job paying £250k p/a I’d only be paying back around £20k in that last year regardless of the additional interest that had accrued in that time.

The system is fine. Numbers and rates are scary but, as I said, will make little to no difference for the majority of graduates.

 

[LastGarrison]

For anyone who can get their kid an Irish (or any EU) passport through you, your parents etc. I’d recommend getting one and then sending them to study a degree taught in English in the Netherlands for 2000eur a year. And even that was halved to 1000eur last year.

 

[Sky_Blue_Dreamer]

You’ve not quite got this - the debt only remains for 30 years post-graduation and repayments are fixed at 9% above the income threshold. So if I graduated with a debt of £50k and was in a job below that income threshold for 29 years, then moved to a job paying £250k p/a I’d only be paying back around £20k in that last year regardless of the additional interest that had accrued in that time.

The system is fine. Numbers and rates are scary but, as I said, will make little to no difference for the majority of graduates.

Did you miss the bit where the plans are to extend that 30 year period to 40 years? Or that interest on the loans became linked to be above CPI? Why is an interest rate linked to the inflation rate at all, let alone set above it? If anything it should be linked to the borrowing rate and should never be in excess of it otherwise it's just profiteering (although if the desire is to get people into higher education it should be interest free).

I'm not saying that before the changes where you paid it back regardless of earnings was great - it wasn't - I'm saying this is not great either, especially taken in an historic context considering in the days when it was largely the preserve of the wealthy who got their tuition free, student grants and could fiddle the system to say they were unemployed.

I accept that the public funding of such large scale HE isn't feasible as it's not possible for all of those graduates to become higher earners and repay the cost in taxes from future earnings. But that's a problem with how we're trying to promote the FE/HE system and placing such a massive emphasis on it compared to other options and thus leaving a skills drain in other areas, which is a different conversation entirely.

 

[shmmeee]

Would these be the same student loans that were first implemented under New Labour by any chance?

And they were a shit idea. Blair did a lot of good in compulsory education but the FE/HE strategy was a clusterfuck. Not seen it improve in the 12 years since mind.

The wallpaper the previous owners left in my living room is shocking, but I’ve only got my own laziness to blame for it still being there a year later.

 

[shmmeee]

You’ve not quite got this - the debt only remains for 30 years post-graduation and repayments are fixed at 9% above the income threshold. So if I graduated with a debt of £50k and was in a job below that income threshold for 29 years, then moved to a job paying £250k p/a I’d only be paying back around £20k in that last year regardless of the additional interest that had accrued in that time.

The system is fine. Numbers and rates are scary but, as I said, will make little to no difference for the majority of graduates.

£500/mo off my salary makes quite a big difference thanks.

 

[fernandopartridge]

.

The system is fine. Numbers and rates are scary but, as I said, will make little to no difference for the majority of graduates.

What's the point in this change then? What's the point in student loans as the govt essentially writes them off after a few years

 

[chiefdave]

What's the point in student loans as the govt essentially writes them off after a few years

They weren't written off, the pre 2012 loan books were sold to dodgy debt collection companies with no provision for the existing terms to be maintained which resulted in aggressive pursuit of money owed. The companies involved were regularly in trouble with the ombudsman for dodgy practices.