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HPC001

Interest On Student Loans Set To Increase

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http://www.bis.gov.uk/policies/higher-education/students/student-finance

Should this policy go ahead, there are two obvious consequences apparent:

1) higher fees (albeit paid upon graduation)

2) higher interest rates (with the suggestion that extra repayments if you get a higher-end job will be self-defeating)

It also doesn't address the common complaint of people doing dumbed down arts degrees and never paying their loan back due to having a low income. In fact this will be easier as the threshold is set to increase to over £21,000.

Assuming the current inflation figure of 3.7% is correct, someone earning in the higher tax bracket would pay 6.7% interest on their loan (RPI + 3%). I don't even know anyone paying that much on a mortgage. The commercial banks certainly aren't paying the BoE much interest on their borrowing...

It seems the lesson here is either stay away, stay poor or become an investment banker <_<

Edited by HPC001

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Anybody that thinks the next generation(s) are going to keep the housing ponzi scheme afloat over the next one, two or even three decades needs their head tested.

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Anybody that thinks the next generation(s) are going to keep the housing ponzi scheme afloat over the next one, two or even three decades needs their head tested.

Not directly, but everyone needs to live somewhere. They'll be rack-rented instead, along with anyone else who can't afford to buy.

Edited by HPC001

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Since "we're all in this together" I think we should make our esteemed leaders take the lead in standing up for what they believe in.

Ever single member of parliment and lords who voted for this tution fee rise should retrospectively pay £9000 for every year they spent at college/university aquiring their education for free.......plus the compounded interest. It's only fair, and the right thing to do. We've a deficit to pay off after all.

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Erm, this is one of the things those students were a little miffed about, the interest on the new loans will be charged at commercial rates and the loans will then be sold on to banks for a profit!

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Fortunately have only one offspring and we are funding her through university completely, rather than she gets into debt while we hold savings and some scumbag care home devours them in due course. I sincerely hope she moves to somewhere like Australia or New Zealand as soon as she can even if it means I miss out on her company for most of my declining years. I've alwys thought the driver for the whole idea of student loans was accustoming young people to a lifetime of debt so they won't rock the boat while employed. If they ever are.

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Fortunately have only one offspring and we are funding her through university completely, rather than she gets into debt while we hold savings and some scumbag care home devours them in due course. I sincerely hope she moves to somewhere like Australia or New Zealand as soon as she can even if it means I miss out on her company for most of my declining years. I've alwys thought the driver for the whole idea of student loans was accustoming young people to a lifetime of debt so they won't rock the boat while employed. If they ever are.

That's good of you to do that, unfortunately it isn't always possible (or the will isn't there). The complexities of the assessment system mean that people do fall through the cracks and are left with less than the assumed grant support for "poor" students.

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it's ok, I have the answer, take out an endowment policy, guaranteed (well not really) to pay out loads of money in 25 years time. Just contact your FSA.

tbh, most of the time I just carry on as if everything is normal, but every now and then I think.. WHAT THE ****** IS GOING ON!!!!

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HOLD ON THERE!!!!!! RPI + 3%!?

Does this apply to Scottish graduates!?

I'd imagine the locals might have something to say about that :P

There is mention of a scholarship scheme, no doubt it will be incredibly restricted.

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Sorry, I don't get you - possibly because I'm shattered and about to get some sleep lol... I graduated from Edinburgh uni several years ago and my loan still stands at over £12/13k from memory.. this wont be good news if the rate of repayment is going up.

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Sorry, I don't get you - possibly because I'm shattered and about to get some sleep lol... I graduated from Edinburgh uni several years ago and my loan still stands at over £12/13k from memory.. this wont be good news if the rate of repayment is going up.

"If you are a graduate and currently repaying an income contingent loan your repayment threshold will rise in line with inflation from April 2012."

Nope, you're not safe by any stretch. It's 1.5% for now though.

Edited by HPC001

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A graduate tax?

Given that they are thinking about penalising early repayment in the new scheme (iirc) and the interest rates charged etc, for most it will be an increase in marginal taxation of 9% per annum for their first 30 years of work. In Australia the interest is set at CPI or similar and you get a 10% discount for any early repayments, so in effect is just keeping the real amount owed constant at the worst. In good ol' UK they want to screw people. Just plain evil really.

Edited by Tiger Woods?

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Currently I pay back around £110 a month through PAYE, and I also pay an extra £150 on top of that. So about £3k a year. What's this about penalising people for early repayment!? What a JOKE!>!>!>!>

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Currently I pay back around £110 a month through PAYE, and I also pay an extra £150 on top of that. So about £3k a year. What's this about penalising people for early repayment!? What a JOKE!>!>!>!>

Lord Browne's recommendations

* The £3,290 a year cap on student fees should be scrapped – and universities should be free to charge what they like.

Sounds like there's no upper limit. Although the government takes a progressively larger share from the university's charge at the higher fee levels. So a tax before you've even finished :blink:

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Given that they are thinking about penalising early repayment in the new scheme (iirc) and the interest rates charged etc, for most it will be an increase in marginal taxation of 9% per annum for their first 30 years of work. In Australia the interest is set at CPI or similar and you get a 10% discount for any early repayments, so in effect is just keeping the real amount owed constant at the worst. In good ol' UK they want to screw people. Just plain evil really.

It's been in the pipeline a while, and slowly getting closer. The cut off point will rouse debate.

A lot of people are unaware of what they pay.

We've got increasingly youth unemployment and MDR's of above 100% for the youth still, without taking into account automatic enrolment onto pension schemes and people unaware they can opt out!

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A graduate tax?

A graduate tax, and a tax on being from England. English graduates will be paying 9% more in income tax than those from Scotland.

Do some of our taxes also go north of the border at present. to support Scottish hospitals and roads? I think if they can ring fence their education system, we should be able to ring fence our taxes so they are only spent in England. This has got to break the United Kingdom.

Edited by ingermany

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Are you referring to SERPS here?

Does anybody pay into that? I don't trust the government and so I'd probably like to be out of it.... but AS YET NOBODY HAS BEEN ABLE TO TELL ME just how much extra you receive in state pension through this scheme, in addition to the normal state pension.

If yuo opt out, just how much money are you getting back?

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A graduate tax, and a tax on being from England. English graduates will be paying 9% more in income tax than those from Scotland.

Do some of our taxes also go north of the border at present. to support Scottish hospitals and roads? I think if they can ring fence their education system, we should be able to ring fence our taxes so they are only spent in England. This has got to break the United Kingdom.

But surely a credit worthy member of the aristocracy could gain a loan with favourable interest, thus it would only be a tax on the poor.

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As someone who has a few k of loan oustanding, I'll be damned if I'm paying RPI on it in April 2012 (we'll probably be at around 7% by then!).

So, do I pay it back before then or leave the country and let them keep racking up the numbers on their spreadsheet?

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As someone who has a few k of loan oustanding, I'll be damned if I'm paying RPI on it in April 2012 (we'll probably be at around 7% by then!).

So, do I pay it back before then or leave the country and let them keep racking up the numbers on their spreadsheet?

I wouldn't worry. I believe this only applies to new students.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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