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Student loan interest rates

So is this last part of that story complete crap then?

A Department for Education spokeswoman said: "As has always been the case, borrowers will only ever pay back what they can afford so no-one will see monthly repayments rise and only the highest earners will pay the top rate of interest."The department says that the loans give "protections other lenders don't offer", such as not requiring repayments if income falls below a threshold of £21,000 and that any unpaid debts are paid off after 30 years.

Nothing like a bit of loony left hyperbole to stir up sentiment.
 
So is this last part of that story complete crap then?

A Department for Education spokeswoman said: "As has always been the case, borrowers will only ever pay back what they can afford so no-one will see monthly repayments rise and only the highest earners will pay the top rate of interest."The department says that the loans give "protections other lenders don't offer", such as not requiring repayments if income falls below a threshold of £21,000 and that any unpaid debts are paid off after 30 years.

Nothing like a bit of loony left hyperbole to stir up sentiment.

What?

Students are going to be paying off their loans for a lot longer (paying more in total), with an interest rate charged that is much higher than the current base rate.
 
So is this last part of that story complete crap then?

A Department for Education spokeswoman said: "As has always been the case, borrowers will only ever pay back what they can afford so no-one will see monthly repayments rise and only the highest earners will pay the top rate of interest."The department says that the loans give "protections other lenders don't offer", such as not requiring repayments if income falls below a threshold of £21,000 and that any unpaid debts are paid off after 30 years.

Nothing like a bit of loony left hyperbole to stir up sentiment.

That's all well and good until a graduate wants to try and get a mortgage to buy a houseflat.
 
A tenner to SZ say's it won't. You in?


Edit: Actually, don't bother. Should the Tories lose there's no way of implicitly proving either it has or hasn't.

I'm still up for a tenner on the next election result ,if you are? Though, as you say,we won't be able to "prove" it was tuiton fees wot won it.:winking:
 
University is just a con these days. £50k of debt which you'll probably never pay back, and most degrees are worthless. In my first couple of years of working after graduating I think I accrued almost as much interest as I repaid. The whole system needs reforming. Today's A Level results day and another wave of students will be celebrating getting into 'uni' to satisfy their parents and schools, but don't get me started on the problems in higher education... :angry:
 
So is this last part of that story complete crap then?

A Department for Education spokeswoman said: "As has always been the case, borrowers will only ever pay back what they can afford so no-one will see monthly repayments rise and only the highest earners will pay the top rate of interest."The department says that the loans give "protections other lenders don't offer", such as not requiring repayments if income falls below a threshold of £21,000 and that any unpaid debts are paid off after 30 years.

Nothing like a bit of loony left hyperbole to stir up sentiment.
its the loony right that are in power and responsible for these policies.
 
Mate of mine, fellow Shrimper, has a student loan. He is in his 30s..... so he has had it for some time. Because you don't have to repay it until you earn a certain amount, he hasn't paid much of it. He now finds himself in a job where he can't afford to be promoted to a better pay rate because the rise takes him over the threashold and he ends up worse off.

What a bonkers system.
 
Mate of mine, fellow Shrimper, has a student loan. He is in his 30s..... so he has had it for some time. Because you don't have to repay it until you earn a certain amount, he hasn't paid much of it. He now finds himself in a job where he can't afford to be promoted to a better pay rate because the rise takes him over the threashold and he ends up worse off.

What a bonkers system.

Yep. My best mate's wife has a Phd but won't take a job that takes her over the limit.
 
Mate of mine, fellow Shrimper, has a student loan. He is in his 30s..... so he has had it for some time. Because you don't have to repay it until you earn a certain amount, he hasn't paid much of it. He now finds himself in a job where he can't afford to be promoted to a better pay rate because the rise takes him over the threashold and he ends up worse off.

What a bonkers system.

I have wondered about this as a lot of people are saying this. I always thought that you paid a percentage of what ever you earned above the Threshold , currently 17775

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678511&_dad=portal&_schema=PORTAL

So if you got a rise which would put you on , say 18,775, you would pay £90 a year , which combined with you tax NI etc would still leave you £500 a year better off . If your rise put you just £100 above the threshold it would be £9 a year repayment.

It looks like anyone who ends up worse off because they have to pay back the loan really should look at where the remaining 50% of their rise is going (tax ,NI and pensions excluded) .
 
Looking at this from a different perspective, and putting politics to one side for a second.

We seem to be burdening young people with debt across a multitude of areas, from housing to car insurance and of course student debt.

Whilst I appreciate that we have encouraged ever higher numbers into extended education, if the outcome is that you are boxed in by lack of affordability and opportunity in other areas, should we not at least look towards Business to foot some of cost as ultimately they get the benefit.

It doesn't necessarily have to be a tax, but could be via sponsorship or for larger employers to be able to award degree level education in their own right through accredited systems.
 
Looking at this from a different perspective, and putting politics to one side for a second.

We seem to be burdening young people with debt across a multitude of areas, from housing to car insurance and of course student debt.

Whilst I appreciate that we have encouraged ever higher numbers into extended education, if the outcome is that you are boxed in by lack of affordability and opportunity in other areas, should we not at least look towards Business to foot some of cost as ultimately they get the benefit.

It doesn't necessarily have to be a tax, but could be via sponsorship or for larger employers to be able to award degree level education in their own right through accredited systems.

Thought Macdonald's already had their own "universities?" :winking:
 
Yep. My best mate's wife has a Phd but won't take a job that takes her over the limit.

Sounds like a great attitude in life. People who have used tax payers money for an adult education should pay it back.

Should be the other way round if you earn over a certain amount you should pay nothing back as your already paying enough tax and your education has been worth it.
 
Instead of listening to politicians views, why don't people listen to independent experts? Someone like Martin Lewis is worth reading when it comes to financial advice. The terms of the loan in his opinion are the best around, the issue is whether students should be charged at all.
As far as I understand it the labour government brought in student loans after consulting the university's which were (in their opinion) losing money hand over fist.
The Scottish "free" university's is just a political gimmick - they need overseas students (and English) and the rest of education up there is suffering as a consequence.
 
I have wondered about this as a lot of people are saying this. I always thought that you paid a percentage of what ever you earned above the Threshold , currently 17775

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678511&_dad=portal&_schema=PORTAL

So if you got a rise which would put you on , say 18,775, you would pay £90 a year , which combined with you tax NI etc would still leave you £500 a year better off . If your rise put you just £100 above the threshold it would be £9 a year repayment.

It looks like anyone who ends up worse off because they have to pay back the loan really should look at where the remaining 50% of their rise is going (tax ,NI and pensions excluded) .

Which is why, in my first post, I quoted a DoE spokesperson and asked the question of whether the percentage of future earnings over a threshold limit is rubbish and just made up, but it hasn't been answered yet. If in ten years time you end up in a well paid job on lets say £40k a year you will pay a percentage of that and only up to an amount that you can afford. Why is that such an anathema to some people.
 
Sounds like a great attitude in life. People who have used tax payers money for an adult education should pay it back.

Should be the other way round if you earn over a certain amount you should pay nothing back as your already paying enough tax and your education has been worth it.

So much for progressive taxation,then.
 
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