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The Total Repayable Cost Of A Degree Laid Bare

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Conclusions drawn by many on this very forum confirmed by bean counters.

Surprised no one's seemed to post this yet:

http://www.bbc.co.uk/news/education-12767850

The figures, by leading accountants, show that a student borrowing £39,000 for a three-year course could pay back up to £83,000 in total, in cash terms.

The calculations assumed all the students borrowed a total of £39,000 - £9,000 in fees and £4,000 for maintenance over a three-year course - and go on to earn above the national average.

The universities minister said the new system was fairer than the old one.

He said it was "less burdensome" that monthly repayments were lower but spread out over a longer period.

:huh:

Oh dear, student loans likened to Mortgages and Hire Purchase schemes. Looks like Cleggy and Sub Prime Dave didn't think this through. Labour can stfu too, given they let the genie out of it's bottle after promising not to.

There's some right perls in there if you can be bothered to read it. I'm suprised Willetts maintains a straight face.

£83k to earn £100k more (if you're lucky to actually get a decent job mind)? What a joke. No doubt the shortfall/write offs will simply be added to the tab for generation AA to pay off.

Edited by PopGun

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Conclusions drawn by many on this very forum confirmed by bean counters.

Surprised no one's seemed to post this yet:

http://www.bbc.co.uk...cation-12767850

:huh:

Oh dear, student loans likened to Mortgages and Hire Purchase schemes. Looks like Cleggy and Sub Prime Dave didn't think this through. Labour can stfu too, given they let the genie out of it's bottle after promising not to.

There's some right perls in there if you can be bothered to read it. I'm suprised Willetts maintains a straight face.

£83k to earn £100k more (if you're lucky to actually get a decent job mind)? What a joke. No doubt the shortfall/write offs will simply be added to the tab for generation AA to pay off.

whether its the student, or taxpayer that pays for the education, it Is paid for.

we have huge Universities all over the UK with newly built accomodation, large admin payrolls, huge salaries for "academics"...this whole scheme recently was simply an exercise to keep three years worth of students off the unemployment registers.

Like all Public sector waste..this sector is very badly contaminated....they too need to be culled...

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Its all paid back pre-tax. but its still a large debt burden.

Being able to get a job after obtaining your degree might help :(

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£83k to earn £100k more (if you're lucky to actually get a decent job mind)? What a joke. No doubt the shortfall/write offs will simply be added to the tab for generation AA to pay off.

No, this is just as intended, they want to discourage higher education in the UK population so an army of badly educated low paid serfs can serve the Banking and Political Elite. That way they can move in low paid workers outside the EU to do the less menial work, at the same time make it harder and harder to survive on any kind of social welfare, you will have no choice but work for the piggies if you want to eat and breed. Buying a house and maintaining your sanity will be the least of our concerns. <_<

Edited by JustAnotherProle

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Yet still they're queuing round the quadrangle to enroll for Media Studies.

No one's bothered about running a debt they know they'll never have to pay back.

Hopefully kids won't realise this after seeing these figures laid bare before them, highlighting the entire folly of it all.

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whether its the student, or taxpayer that pays for the education, it Is paid for.

we have huge Universities all over the UK with newly built accomodation, large admin payrolls, huge salaries for "academics"...this whole scheme recently was simply an exercise to keep three years worth of students off the unemployment registers.

Like all Public sector waste..this sector is very badly contaminated....they too need to be culled...

Again, you ignore the bigger picture and fail to see the ruse.

Besides, who voted for all this massive hyper expansion of higher education over the last 20 years?!?

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A disastrous policy of 'mass-marketing' higher education, merely to ultimately devalue it, and politically more importantly to keep the swathes of 18-23 year olds off the dole - the jobs simply aren't there for them. The radical new thinking to equate sharing the jobs out that we do have better (reduce the working week, reign in salaries at the top) and keeping the cost of living down (housing costs and taxes) simply does not exist. They prefer the fantasy.

Telling is the quote from Willets (meet the new boss...)

Universities Minister David Willetts: "I think for many people what will matter the most are lower monthly repayments"

This is exactly the same argument to justify higher house prices in a low interest rate/low inflation (?) economy.

I really think the young have been totally shafted by our political nonces.

Basically, kids with no comprehension of life and finance have to take out a mortgage (for a second rate, not fit for purpose education) before they have to take out a mortgage for living somewhere.

Scheme 100% approved by the banksters.

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Saw this myself on BBC news. You know the first thing I thought of ?

When was the last time the BBC explained how much a mortgage taken over 25 years would cost, including interest, to pay back ?

From all the property stories, and porn, and investigations - I don't think I have ever heard them mention it - even once.

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A disastrous policy of 'mass-marketing' higher education, merely to ultimately devalue it, and politically more importantly to keep the swathes of 18-23 year olds off the dole - the jobs simply aren't there for them. The radical new thinking to equate sharing the jobs out that we do have better (reduce the working week, reign in salaries at the top) and keeping the cost of living down (housing costs and taxes) simply does not exist. They prefer the fantasy.

Telling is the quote from Willets (meet the new boss...)

This is exactly the same argument to justify higher house prices in a low interest rate/low inflation (?) economy.

I really think the young have been totally shafted by our political nonces.

Basically, kids with no comprehension of life and finance have to take out a mortgage (for a second rate, not fit for purpose education) before they have to take out a mortgage for living somewhere.

Scheme 100% approved by the banksters.

+1

Interestingly it's this very same ignorance of the total repayable figure that allowed sub prime finance to become so rife.

And CCC yes, I don't remember them ever doing that either.

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+1

Interestingly it's this very same ignorance of the total repayable figure that allowed sub prime finance to become so rife.

And CCC yes, I don't remember them ever doing that either.

LOL. It took a senior accounting firm to work this out.

Any fool knows if you're taking out a 25 yr loan you will end up paying back atleast twice the principal. And it's taken a leading accounting firm weeks to come up with this head line.

It shows the calibre of graduates that we are producing. Total TW*TS.

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I notice that under the new scheme interest will range from inflation only, to inflation plus 3%. Under all previous schemes it has been inflation only. That's a quite big change in policy. Some students will now pay back more than they borrowed even when accounting for inflation.

Even under the current scheme many students don't understand (and I know this from my own experience) that until you start earning a half decent wage the amount you owe on your student loan will actually increase year on year. So for example if you owe 20k at graduation and RPI is 5% you would need to pay off at least 1k per year just to maintain the balance. You would pay 9% on all earnings over 15k. If you earned 25k per year you would pay £900 in student loan contributions per year which means your net debt would actually increase by £100.

Under the new scheme students could graduate with a student loan debt of around 40k and the payment threshold will increase from 15k to 21k. A student with 40k debt at 5% RPI would need to earn at 43k per year just to maintain the balance! How many graduates do you know that earn 43k in their first year of work? I graduated nearly ten years ago and even I don't earn that much!

Edited by monstermunch

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The UK is sh*t.

We've managed to create a society where (working) people have to pay for everything (the 'low public services ' of low tax/low public services US model) and combine it with high taxes (high tax/high service model of Sweden).

Putting the load on the individual is OK (not perfect but acceptable) if you have a low-tax take - say 30%ish.

How the f**k can justify the state taking 50% of GDP and serve up the public sector dross in the UK?

It's like paying Gorndon Ramsay prices for MaccyDs.

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Personally I think the colleges should be lent the money at (low) interest. Then the colleges can bet on the people they accept, the courses they offer with due regard to 'prospects'.

If they don't get their money back, they go bust.

That would mean that the 'best minds in the country' (self appointed) can decide what are the highest returning/lowest risk jobs and employment is likely to keep them in business and pay themselves.

Young people are simply not well enough informed on average to make these kinds of considerations. Otherwise you wouldn't spend the good part of £80,000 repayable over many years to take media studies at a former poly.

The colleges are simply raping them at the moment.

Or we could just accept that increasing the general level of education should increase productivity and GDP, and therefore might as well be funded through general taxation to save on admin costs..

Of course, there is a 'should' in there, and 'general level of education' should include basic critical thinking skills and maths, rather then sociology.

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The UK is sh*t.

We've managed to create a society where (working) people have to pay for everything (the 'low public services ' of low tax/low public services US model) and combine it with high taxes (high tax/high service model of Sweden).

Putting the load on the individual is OK (not perfect but acceptable) if you have a low-tax take - say 30%ish.

How the f**k can justify the state taking 50% of GDP and serve up the public sector dross in the UK?

It's like paying Gorndon Ramsay prices for MaccyDs.

+1

On balance I think I'd prefer the high tax / good public services model but it really does need to be one or the other. We seem to have the worst of both worlds.

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People should be leaving school at sixteen or eighteen with a proper education and fit for work. Like the old days.

My partners children think University is a mugs game and they are not going. However they had a decent private education and are really smart.

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Saw this myself on BBC news. You know the first thing I thought of ?

When was the last time the BBC explained how much a mortgage taken over 25 years would cost, including interest, to pay back ?

From all the property stories, and porn, and investigations - I don't think I have ever heard them mention it - even once.

That is a very good point, it couldn't more biased reporting. I too don't ever remember earing a mention of the overall cost of buying a house!

When has the BBC ever reported "Cost of a £200,000 house to reach £424,000 by the end of your 25 years 7% mortgage"...

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First employers put the costs of their training onto the state, now they have arranged matters so that the costs of their training are to be paid by their employees.

Its a very deliberate process, the real pisser of it is that those who manage to wriggle through it and get to the other side will fight like ****** to keep it in place.

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Or we could just accept that increasing the general level of education should increase productivity and GDP, and therefore might as well be funded through general taxation to save on admin costs..

Of course, there is a 'should' in there, and 'general level of education' should include basic critical thinking skills and maths, rather then sociology.

Isn't it the case already that you are more likely to be earning more if you had a good education and therefore people on 40% income tax are in effect paying back their education? I see this as another form of stealth tax, rather than use tax revenue (already exceptionally high for the pour level of services we get in return) invent a new tax. The tuition fee would be sorted by simply abolishing all the useless degrees on offer, this would naturally limit the number of students and solve the funding crisis defacto. This is another unintended consequence of political correctness, everybody need to be given the chance of "higher" education, universities get flooded and funding gets scarce...

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Educating a pupil in state school - 5 days a week for 7 hours a day in a wide variety of subjects over 40 weeks of the year costs £6k per child.

I'm struggling to see how my university could charge £9k per year for delivering 12-15 hours of lectures in classes of 100 and a couple of hours of tutorial in groups of 5 or so for 26 weeks a year?

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Easy credit for life style choices, like a new kitchen or a hot tub, ended in tears. Impetuous people got suckered in and were left with a debt they'll struggle to repay.

Easy credit for similarly vacuous life style choices, like a degree in Fashion or Media Studies, will also end in tears.

Isn't that just obvious? Who in their right minds confuses these idiotic qualifications with a career enhancing education that could possibly pay back the original investment?

I've worked in the media business most of my working life and have never once met anyone in the industry with a Media Studies degree. Not one single person. And I never will because applications from Media Studies graduates are considered an industry joke. So if a Media Studies degree effectively bars you from ever landing a job in media what is the point?

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Isn't that just obvious? Who in their right minds confuses these idiotic qualifications with a career enhancing education that could possibly pay back the original investment?

I think the point may have already been made but expecting 17/18 year old kids to be able to make informed decisions about questions like this is a nonsense

As with lending money to people to buy houses, the sane, rational expectation would be that the organisation lending the money has got the experience and data to decide whether the loan will be viable or not

It's a personal choice whether you believe the people pushing the credit are doing so out of incompetence or design. Personally, I lean towards design

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Again, you ignore the bigger picture and fail to see the ruse.

Besides, who voted for all this massive hyper expansion of higher education over the last 20 years?!?

please enlighten...it would be a first.

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  • 284 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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