Student loan interest rate looks set to double

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http://money.guardian.co.uk/creditanddebt/studentfinance/story/0,,2109154,00.html

Interesting, I haven't heard too much about this in the mainstream news so far.
Could hit a lot of students and former students if it does work out like this.

I have an outstanding balance which I can afford to pay back, but have chosen not too as I get a better rate of interest on savings. That may not be the case if the interest rate goes to 4.8%... better look at paying it back!
 
dirtydog said:
In the sense that I don't have a student loan while others who ought to be paying more, do? Absolutely :D
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That really doesn't make any sense. Why should some people pay more interest than others?

The government should be doing all it can to reduce the costs of going to university, not increase student loan interest.
 
dirtydog said:
Simply because the rate is too low to begin with. It should be at commercial borrowing rates.
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How the heck is it too low, it is set at the rate of inflation. It doesn't make any sense what so ever to set it at a commercial level. Students going to university are not businesses and do not earn income. The whole idea is to provide a affordable loan that students can use without becoming bankrupt.
 
I do not sympathise with anybody on this. The current students will have to drink a few less pints each month, and the graduates will have to...drink a few less pints each month.

cleanbluesky said:
'should' education not be free?
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Education should be, but higher education should not.
 
Haircut said:
http://money.guardian.co.uk/creditanddebt/studentfinance/story/0,,2109154,00.html

Interesting, I haven't heard too much about this in the mainstream news so far.
Could hit a lot of students and former students if it does work out like this.

I have an outstanding balance which I can afford to pay back, but have chosen not too as I get a better rate of interest on savings. That may not be the case if the interest rate goes to 4.8%... better look at paying it back!
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As someone said earlier, drink less ....... and pay up when, like the OP, you have the means ie PLAY THE GAME.
 
Bring back grants I say.

To think of the money this government has squandered on quangoes, consultants, benefits, etc. The cost of grants was a drop in the ocean and one of the first things they got rid of.

Not all students are pint drinking layabouts and I think the loans have scared away some of our great potential.
 
Vanilla said:
Bring back grants I say.

To think of the money this government has squandered on quangoes, consultants, benefits, etc. The cost of grants was a drop in the ocean and one of the first things they got rid of.

Not all students are pint drinking layabouts and I think the loans have scared away some of our great potential.
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Grants should be for people doing useful degrees imo, as it will stop people doing sociology or a degree in fine art if they are just looking for an easy 3 yrs.

KaHn
 
cleanbluesky said:
Why? Does it not serve to offer education to all those who could make use of it?
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In answer to the second question yes, but at a very high price to us all. In answer to the first question, because as modern times are showing, not everybody who embarks on higher education is worthy of it. Think how many read mickey mouse subjects for no practical reason. Think how many read proper subjects knowing full well they have no intention of going into the relevant industries due to the low pay. Think how many go purely to avoid the workplace for three years, and think how many go just to have a good time.

Now in principle, if it is they who are paying for the resources they will use, then I have no objection to any of the above phenomena; if it is the taxpayer who is paying for the resources, then I object strongly to all of the above.

If a big sacrifice must be made in order to pursue a course of higher education, then that automatically acts as a flood barrier against the large number of timewasters who go to university simply because it's their 'human right' rather than to make productive use of the resources they will be claiming.
 
All it means is a lot more students having to get part time work when at university. hardly the end of the world.

All of my mates went to Edinburgh Uni, largest student loan any of them have is £5000. They all got part time jobs and rented in the town too, which is hardly cheap.

The main way they saved money was by staying in more and being as tight with their spending as possible.
 
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