Graduates 'could pay back double their student loans'

I think this will price my spawn out of uni, they will be relegated back to being fishermen and shop keepers.

What is the sense in getting into £80k debt for a job that will start at 20k and by the time u retire you could only be on 40k...

I assume this now means uni is only for the super rich again?
 
Oxy said:
I think this will price my spawn out of uni, they will be relegated back to being fishermen and shop keepers.

What is the sense in getting into £80k debt for a job that will start at 20k and by the time u retire you could only be on 40k...

I assume this now means uni is only for the super rich again?
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It won't price anyone out of anything, it's effectively a capped, time limited additional tax liability that you only pay back over a high earnings threshold....

There is a whole different argument about the value of sending large numbers of people to university to study irrelevant crap, but that's another issue from the fees...
 
As I read the article, I was hearing "whine whine whine, students may pay twice what they borrowed ohh nooooeeeess - oh, by the way, we're not bothering about inflation's effects on the value of that money".

So I thought - OK, so they're talking about 25 or 30 years, here.

The worst example it cites is this:
The second student gets a £2,000 per year rise over and above average pay, and clears the debt completely in 25 years, paying a total of £83,791 in cash terms.
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So, 25 years.

So I go and look at past data, 25 years ago was 1986.... I find a site that shows how UK prices have inflated since then... Well it only goes up to 2010 so let's look at 1985 to 2010. The price converter on http://safalra.com/other/historical-uk-inflation-price-conversion/ reckons that £39k in 1985 would be the same /real/ value as £90k in 2010.

So, really, if we make the (admittedly huge) assumption that inflation averages out to a fairly linear increase over the years - really, that 'second student' with the raw deal is actually paying back LESS than he or she borrowed in real terms.

Big deal, huh?

THIS is my beef with the article!
 
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Oxy said:
I think this will price my spawn out of uni, they will be relegated back to being fishermen and shop keepers.

What is the sense in getting into £80k debt for a job that will start at 20k and by the time u retire you could only be on 40k...

I assume this now means uni is only for the super rich again?
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It makes no difference if you are rich or poor whatsoever... (well actually those with richer parents get a lower maintence loan).

Why do people keep saying this will affect the poor? And do people not realise that courses have to be paid for somehow, if not tuition fees then higher taxes? This just makes it more transparent and fair...
 
Gilly said:
I've just paid my deposit today. Student loans are pittance, and if you take longer than 30 years to pay are written off!
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This. As a student all this griping and moaning is really starting to hack me off.

If you don't like it, don't go. If you cannot see the long-term financial investment of it, then you should ask yourself if you're really bright enough to be making such decisions about your future, let alone go to University. :rolleyes:
 
Oxy said:
I think this will price my spawn out of uni, they will be relegated back to being fishermen and shop keepers.

What is the sense in getting into £80k debt for a job that will start at 20k and by the time u retire you could only be on 40k...

I assume this now means uni is only for the super rich again?
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If you're on 20K then you don't pay anything back.
Everyone gets a full tuition fee loan, so being "super rich" doesn't even come into it. No one is "priced out".
 
And so begins another 6 page thread (or 20 if you're on women size pages) on how fair/unfair the system is, with 95% of the posters not even understanding how the system works.

I'm calling it now.
 
Thinking about it, I didn't go to uni because I didn't like the idea of being in debt, but looking at it now, it isn't that bad in the grand scheme of things really, and the whinging is really getting on my nerves tbh, thankfully the mass whinging in the centre of newcastle city centre has died down for the minute.

So maybe I should have gone to uni after college, and had some experiences my other mates have had, but in retrospect, I look at the full time job I already have, the car I have, the motorbike I have, and the fact that I'm going to uni part time now, getting a days wages for the day, and my fee's are being paid for me :D
 
Very poor story this and can see the Daily Mail doing a front page feature on it. Picking out twisted 80K plus figures and not reporting the facts.
 
A student loan will be the cheapest money you ever borrow, you don't control how its paid back and no one will knock on your door demanding payment. You either take the loan and pay it back (OH MY GOD YOU HAVE TO PAY IT BACK) or don't. It really is that simple. You can pay it off quicker if you like with lump sum payments.

This is what you have to do if you want to go to uni. At least its not like it is in the US where it costs 10,000's a term.
 
Looking forward to my DSA grant in September ;)

Plus rent is going down to 50 quid a week. So I'm gonna save loads for after Uni and try and be debt free quick, either that or get a house :)
 
I don't get the problem that students are having here.

If you want a well paid job then go to Uni and pay for the privilege of earning a qualification that gives you access to better paid jobs but don't then bleat about how much it cost you to get there when the benefits, most probably, outweigh the downsides i.e. paying back for an education that put you where you are.
 
Brookert said:
I feel sorry for my sister. She will be the first year to get charged the new rates.

So we will come out with similar degrees. I will have about 25000 ish to pay off. She might have well over double that.
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Yeah same with my little brother and I have about the same amount to pay off :-( it wouldnt be as bad if they didnt keep sending me letters saying exactly how much I owe :(
 
Hikari Kisugi said:
Any loan over thirty years is going to cost twice the loan amount in the end.
Interest rates are at a record low, but won't stay there for 30 years.
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The student loan is actually written off after 25 years. Increasing tuition fees exacerbates this problem because it means even more money will not be paid back, costing the tax payer a lot more money.
 
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