Student loans

[Scrutinize]

The measure of a worthwhile education isn't dependant on how much you earn afterwards...............

It absolutely is when at the end of it all you can easily have 40k plus in debts. If you chose the wrong degree, it easily ends up as a millstone around your neck and still doesn't guarantee you can get into the career you wanted.

 

[Deleted member 66701]

It absolutely is when at the end of it all you can easily have 40k plus in debts.

No it isn't, because you don't have to pay those debts off if your earnings don't reach a certain level. In fact, if you want to keep a higher percentage of your earnings, there is an incentive to keep your earnings below £21k. I know a few grads that have reduced their hours to keep their earnings below the threshold.

If you chose the wrong degree, it easily ends up as a millstone around your neck and still doesn't guarantee you can get into the career you wanted.

A debt you don't have to repay isn't a millstone.

 

[Scrutinize]

No it isn't, because you don't have to pay those debts off if your earnings don't reach a certain level. In fact, if you want to keep a higher percentage of your earnings, there is an incentive to keep your earnings below £21k. I know a few grads that have reduced their hours to keep their earnings below the threshold.

A debt you don't have to repay isn't a millstone.

You reaslise I am still referring to the op's situation in all of this this?? 2 years will have to be self financed/borrowed not SLC.

His lad wants to go into automotive/transport design, which requires an accredited core/engineering degree to progress in.

The other entry routes are much cheaper and quicker options and have the same opportunities as a non related degree.

If his lad wants to go into the marketing or graphic design/cgi/publishing aspects that is different. Will still require the right degree from a good uni and substantial portfolio.

 

[Slam62]

I think all the comments here are correct in one way or another.

We shall eventually find out from the SLC which years they will fund and I want him to fund a significant amount to show commitment.

As regards job prospects, it is at Coventry and they apparently have lots of links with the motor industry . That's the story anyway.
Seems a reasonable punt to me.

 

[Scrutinize]

Just make sure he gets a good placement and a high 2:1 or 1st as it's highly competitive streaming for the jobs.

That's one of the better courses. Will be worth doing the masters.

 

[Kenai]

What? SLC don't "fund" people different amounts depending on whether they think they are "a good investment" or not!.

He's explaining why, of the 2 years funding remaining he has available from the SLC, they'll fund the last two years not the first two.

 

[Kenai]

No it isn't, because you don't have to pay those debts off if your earnings don't reach a certain level. In fact, if you want to keep a higher percentage of your earnings, there is an incentive to keep your earnings below £21k. I know a few grads that have reduced their hours to keep their earnings below the threshold.


A debt you don't have to repay isn't a millstone.

That's all well and good for someone like you, as I recall near retirement? What about when you're 21, try buying property or saving deposits whilst you eternally aim to earn under 21k.

 

[muon]

That's all well and good for someone like you, as I recall near retirement? What about when you're 21, try buying property or saving deposits whilst you eternally aim to earn under 21k.

Exactly.

Very few people would be happy with a lifestyle of net income of £21k minus taxes (in the long term, even adjusting upwards for inflation over time). No idea how you'd even save up for a pension. Not being able to buy a property is a bit overplayed, especially if you manage to get into social housing.

However, saying that student loans are very good forms of finance. If you were going to borrow £9k, that'd be the way do to do it.

 

[Kenai]

Exactly.

Very few people would be happy with a lifestyle of net income of £21k minus taxes (in the long term, even adjusting upwards for inflation over time). No idea how you'd even save up for a pension. Not being able to buy a property is a bit overplayed, especially if you manage to get into social housing.

However, saying that student loans are very good forms of finance. If you were going to borrow £9k, that'd be the way do to do it.

Maybe over played but how many 18 year olds are sat discussing their dream of going to uni to spend a lifetime in social housing?

 

[muon]

Maybe over played but how many 18 year olds are sat discussing their dream of going to uni to spend a lifetime in social housing?

I also meant people are happy to rent (social rents is an added bonus). It's what will happen for the upcoming generation (born late 80s/90s onwards).

I guess you are right in that even then there is a UK attitude that it is good to purchase your own home.

 

[Deleted member 66701]

Exactly.

Very few people would be happy with a lifestyle of net income of £21k minus taxes (in the long term, even adjusting upwards for inflation over time).

Salary sacrifice (which includes pension contributions) can bring a £35k salary below the student loan repayment threshold

 

[muon]

Salary sacrifice (which includes pension contributions) can bring a £35k salary below the student loan repayment threshold

You'd just end up with a massive pension etc.

I don't see how you could use salary sacrifice to purchase a holiday, a new computer, go out to a restaurant etc.

 

[Slam62]

Well, the wife has been on to the SLC and it looks like he gets the maintenance loan for all 3 years but tuition fees for 2.

Does this sound about right to anyone?

He's going to contact the university and ask about an alternative to the foundation course either doing it nearer home or maybe a shorter substitute.