Student Loans Debt Relief

[workhou]

Are they just saying this to entrap more into the uni debt ponzi scheme? What next mortage debt cancelled?

http://www.independent.co.uk/news/education/education-news/half-of-graduates-could-have-their-student-loans-written-off-admits-government-8297216.html

Read it and weep. Wish I never bothered being responsible and paying mine back now.

[Bloo Loo]

Are they just saying this to entrap more into the uni debt ponzi scheme? What next mortage debt cancelled?

http://www.independe...nt-8297216.html

Read it and weep. Wish I never bothered being responsible and paying mine back now.

its not news...thats how it is....baby loo has one...never paid a penny off it.

[Guest_James Toney_*]

i thought it was over 15k , i know my mate said he was paying his back, and i know he earns under 20k he told me, will this mean he will stop paying it until he gets over 21k ?

[interestrateripoff]

I took a couple out in the late 90's, one was to buy a computer the other I took out and put in the bank and then ended up using it for part of the deposit on the house.

Stopped paying it back once I realised I wasn't earning enough and have deferred every year since.

I doubt I'll ever pay the money.

[dangermaus]

i thought it was over 15k , i know my mate said he was paying his back, and i know he earns under 20k he told me, will this mean he will stop paying it until he gets over 21k ?

i think they raised it if you took it out in the last few years, still 15k for previous takers though

[57percent]

I met a girl when I was cycling in America. She'd got $300k in debt doing a course, so decided there was no point in ever having a real address or job. Cycled round and round America earning a few quid here and there.

Nice life for a while, but at some point it'll catch up with her.

No course costs $300k. It's a government sponsored con to make everyone working at universities very rich.

We're creeping the same way here.

[Butthead]

No course costs $300k. It's a government sponsored con to make everyone working at universities very rich.

Bullseye.

[Priced_Out_GenXer]

This was always on the cards. I have said this many times before but even a twelve year old with a basic grasp of mathematics could see that the student loan system was flawed and that was under the older system before the hike in tuition fees. Since they raised tuition fees the average student loan doubled from around 15-20k to nearer 40k so the figures now look even more suspect.

The earnings threshold for repayment was 15k when I graduated in 2001 and evidently it has now been raised to 21k. Student loan repayments amount to 9% on all earnings above the threshold i.e. anyone earning less that 21k will not repay any of their student loan. Interest at the rate of RPI inflation (as at September) gets added every year. So you have to pay back at least some of the loan each year just to cover the interest. The problem, of course, is that most graduates do not earn enough - certainly for the first few years after graduation – to even cover the interest.

Example -

Year 1 Graduate salary £25k (and that’s being very very generous) - 21k threshold = 4k x 9% = £360 student loan repayments

Year 1 £40,000 student loan x 3% RPI = £41,200 - £360 = £40,840

In year 2 the amount owed has increased by £840. Just to pay off the interest in the first year the student would need to earn £44k! How many student do you know that earn £44k in the first year after graduation?

I feel lucky that my student loan was ‘only’ 19k. I graduated in 2001 and for the first few years the amount I owed was getting larger because my repayments weren't even covering the interest. It’s only in the last four or five years that I’ve actually started paying it down. Eleven years after graduation I still owe more than 16k. I expect to pay mine off but I'll be well into my 50s,

Edited November 8, 2012 by monstermunch

[righttoleech]

Fees up ninefold since Bliar introduced them against inflation of something like 60%.

'Fuel' and 'beer' escalator that maybe double prices in a decade cause enough problems. No surprise that such outrageous increases become money losing Kafkaesque nightmares.

'Don't worry.......no upfront fees to pay'!!!!! Clegg reminds us. This pay tomorrow attitude is what has shafted this country. An extension of the 4 years interest free DFS model where payments outlive the furniture.

......But if you were stupid enough to take out PPI insurance or an interest free mortgage you will be compensated.

BRAIN DEAD AR$EHOLES

[RufflesTheGuineaPig]

You're all idiots.

Look it's very simple.

If half of young people go to uni, and you make going to uni cost £21k, what you are able to do is transfer £21k of the outstanding government debt liability from the government DIRECTLY TO YOUNG PEOPLE. Old people ran up a £5trn debt but are too old to pay it back, so you HAVE to find a way to FORCIBLY transfer that debt DIRECTLY onto young people.

It's not money for education, it's not money for universities, it's just a direct transfer of wealth from young to old. They may as well say "on your 22nd birthday you are required to give your grandparents £21,000 in exchange for the right to live"

Edited November 8, 2012 by RufflesTheGuineaPig

[Errol]

It's not money for education, it's not money for universities, it's just a direct transfer of wealth from young to old. They may as well say "on your 22nd birthday you are required to give your grandparents £21,000 in exchange for the right to live"

This. As in the USA, it's just another way of getting debt/cash into the system. They are basically printing money as the government doesn't have the money to lend in the first place.

[Democorruptcy]

You're all idiots.

Look it's very simple.

If half of young people go to uni, and you make going to uni cost £21k, what you are able to do is transfer £21k of the outstanding government debt liability from the government DIRECTLY TO YOUNG PEOPLE. Old people ran up a £5trn debt but are too old to pay it back, so you HAVE to find a way to FORCIBLY transfer that debt DIRECTLY onto young people.

It's not money for education, it's not money for universities, it's just a direct transfer of wealth from young to old. They may as well say "on your 22nd birthday you are required to give your grandparents £21,000 in exchange for the right to live"

They will tax oxygen for the young. They have no right being so active and using more.

[Game_Over]

What this actually means is that the interest rate on these loans is so punitive that most people will not clear the principle within the 30 year 'cut off'

Of course, over the course of those 30 years the interest paid back will far exceed the original loan amount.

What they are also not saying is that at some point in the next 30 years they will probably extend the period from 30 to 40 years, they may even deduct the outstanding amount form your estate if you die.

I also think that if someone emigrates, they won't let them take any capital out of the country if they still have a loan outstanding.

Basically, student numbers have dropped as a result of this policy and they are now trying to plant a seed in peoples minds that they will be somehow 'let off' this money at some point in the future.

That isn't going to happen - quite the reverse.

Going to Uni is now a mugs game I'm afraid - unless your parents can afford to pay up front.

My daughter has got on a training scheme with a blue chip company that pays her a salary whilst giving her day release to study a professional qualification.

After 2 years she will go onto the Graduate programme and will be on the same scheme as people who have left university with a degree, only she will be a year younger and instead of being 10's of k in debt she will have 10's of k saved towards the deposit for a house (after prices have crashed).

The problem is, positions like this are as rare as hens teeth and getting it was ten times more difficult than getting my sons into Russell group Unis before the fees went up.

I really do feel extremely sorry for anyone leaving college with good A levels now whose parents aren't filthy rich because the new fees regime is just debt slavery.

[interestrateripoff]

I met a girl when I was cycling in America. She'd got $300k in debt doing a course, so decided there was no point in ever having a real address or job. Cycled round and round America earning a few quid here and there.

Nice life for a while, but at some point it'll catch up with her.

No course costs $300k. It's a government sponsored con to make everyone working at universities very rich.

We're creeping the same way here.

But living a nice life and partying all the time can!

[R K]

You're all idiots.

Look it's very simple.

If half of young people go to uni, and you make going to uni cost £21k, what you are able to do is transfer £21k of the outstanding government debt liability from the government DIRECTLY TO YOUNG PEOPLE. Old people ran up a £5trn debt but are too old to pay it back, so you HAVE to find a way to FORCIBLY transfer that debt DIRECTLY onto young people.

It's not money for education, it's not money for universities, it's just a direct transfer of wealth from young to old. They may as well say "on your 22nd birthday you are required to give your grandparents £21,000 in exchange for the right to live"

If that were true then writing off the debt for 1/2 of students is positive no?

Universities Minister David Willetts said today: "We estimate that around half of all borrowers will have some part of their loan written off, as payments are contingent on their future income."

[winkie]

No course costs $300k. It's a government sponsored con to make everyone working at universities very rich.

We're creeping the same way here.

Universities should not have the monopoly on education.....we should be creating new ways to learn and educate ourselves that is not so expensive......surely the internet and new technology can and will bring the cost of overpriced education down.

[FIGGY]

There is another way to not pay it back. Just move to dividends and a minimal PAYE pay and you can earn £100k a year and not pay a penny of it off. My accountant pointed this out to me after I had paid mine off

[FIGGY]

There is another way to not pay it back. Just move to dividends and a minimal PAYE pay and you can earn £100k a year and not pay a penny of it off. My accountant pointed this out to me after I had paid mine off

[Sour Mash]

There is another way to not pay it back. Just move to dividends and a minimal PAYE pay and you can earn £100k a year and not pay a penny of it off. My accountant pointed this out to me after I had paid mine off

Which is fine if you're in the position of having your own enterprise. Not an option for most.

[Ulfar]

Welcome to debt slavery. so it gets wiped out in 30 years, by which time your 50. House prices are toast and saving for a pension is never going to happen.

But TPTB don't care they just want slaves.

The fiscal drag this will introduce is enormous but then seen as you are giving your money directly to the banks they don't care.

[Democorruptcy]

I bought premium bonds with mine and paid the loan off out of the winnings.

[Quicken]

What this actually means is that the interest rate on these loans is so punitive that most people will not clear the principle within the 30 year 'cut off'

Of course, over the course of those 30 years the interest paid back will far exceed the original loan amount.

What they are also not saying is that at some point in the next 30 years they will probably extend the period from 30 to 40 years, they may even deduct the outstanding amount form your estate if you die.

I also think that if someone emigrates, they won't let them take any capital out of the country if they still have a loan outstanding.

Basically, student numbers have dropped as a result of this policy and they are now trying to plant a seed in peoples minds that they will be somehow 'let off' this money at some point in the future.

That isn't going to happen - quite the reverse.

Going to Uni is now a mugs game I'm afraid - unless your parents can afford to pay up front.

My daughter has got on a training scheme with a blue chip company that pays her a salary whilst giving her day release to study a professional qualification.

After 2 years she will go onto the Graduate programme and will be on the same scheme as people who have left university with a degree, only she will be a year younger and instead of being 10's of k in debt she will have 10's of k saved towards the deposit for a house (after prices have crashed).

The problem is, positions like this are as rare as hens teeth and getting it was ten times more difficult than getting my sons into Russell group Unis before the fees went up.

I really do feel extremely sorry for anyone leaving college with good A levels now whose parents aren't filthy rich because the new fees regime is just debt slavery.

I fear you may be right, and completely agree with your last sentence. When did education, education, education morph into f*ck the young? I am so angry on their behalf. :angry:

[19 year mortgage 8itch]

I bought premium bonds with mine and paid the loan off out of the winnings.

You jest but I met someone in 1998 who claimed to have taken out the loans and bought Eurotunnel shares with it.

Wonder how that turned out.

[Errol]

My accountant pointed this out to me after I had paid mine off

Useless accountant.

[Errol]

You jest but I met someone in 1998 who claimed to have taken out the loans and bought Eurotunnel shares with it.

lol.