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Student Debt......they Will Be Made To Pay

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Telegraph

The treasury are starting to realise that much of the annual £3 billion in tuition fees loans will be written off. So they will decrease the income threshold that triggers repayment.

I wonder what the corresponding calculation is for the "Help-to-Sell" property investor government aid package of £16 billion. And of course where property investors get an interest free loan (gift) from government, students get charged crippling interest of RPI+3%, at a time when RPI is being deliberately stoked up by government interference.

Level playing field?

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Fine, as long as they pursue the non-paying EU student debtors rather than just hammering the PAYE-paying Brits because they're a soft target.

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.....but, but......the money spent on paying back £40ks worth of student debt plus interest was going to go towards saving for the home deposit. :wacko:

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The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

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10 billion here, 10 billion there.

Whilst the Govt gap between receipts anf spending is over £100Bn, with no serious plan for getting it to a sensible figure, none of this other stuff matters much.

Actually, by the time non-payment is factored in, it's about £5 billion a year, which is borrowed by individuals rather than government.

It would be vastly more efficient - and fairer - to collect it through slightly increased PAYE tax. But that would leave the financial sector with no role in the whole thing.

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Good.

Since the UK has made 'education' a 'right' to the masses, instead of a privilege to the statistically small but gifted minority, it is 'right' to ask people to face up to their obligations.

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The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

Don't forget the triple-lock.

The only thing that this government cares about is the City and financial sector, for financial backing and future employment, and pensioners, for votes. Everything else is pretty much 'whatever', as long as costs can be kept down.

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The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

But it also suggests that they are going to cripple are large number of low earners now with large loans which need repaying that will stop them from buying a house....

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But it also suggests that they are going to cripple are large number of low earners now with large loans which need repaying that will stop them from buying a house....

You're right, but that effect will not impact for another 5+ years. The big "giveaway" in free money is being engineered now to push up house prices (and therefore spending) between 2013 and 2015. What happens after that doesnt matter.

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The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

Excellent observation. It's the bitter truth of where we're at and what we're up against.

There needs to be another riot.

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But it also suggests that they are going to cripple are large number of low earners now with large loans which need repaying that will stop them from buying a house....

By which point they'll roll out a 'Help to Sell release 2' to deal with the side effects of the student loan debt.

Edited by Ritters

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Telegraph

The treasury are starting to realise that much of the annual £3 billion in tuition fees loans will be written off. So they will decrease the income threshold that triggers repayment.

I wonder what the corresponding calculation is for the "Help-to-Sell" property investor government aid package of £16 billion. And of course where property investors get an interest free loan (gift) from government, students get charged crippling interest of RPI+3%, at a time when RPI is being deliberately stoked up by government interference.

Level playing field?

It opens a whole new pandoras box...how many will go on to self employment and never declare more than 21K..and then with children, if tax credits are still around be able to claim them too.!

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Good.

Since the UK has made 'education' a 'right' to the masses, instead of a privilege to the statistically small but gifted minority, it is 'right' to ask people to face up to their obligations.

Student loans are like no other form of personal debt. They are much larger than any other loan that an 18 year old would ever be offered. They are not secured on an asset which could be sold to clear the debt. They are index-linked so cannot be inflated away. You cannot default on them even if you declare bankruptcy, and an Act of Parliament was used to give the loans this property. Repayments are compulsorily collected directly from your paypacket.

If these terms were written into a the terms of a consumer loan by a private entity, it would be against the law. Since it's the government they can make whatever rules they like, and they can change them by Act of Parliament if they want. The fact that the government is also the creditor to these loans creates just a teeny tiny conflict of interest.

I think it's important to bear these points in mind when talking about obligations. The fact that the government is also shafting exactly the same young people via the housing market is just the icing on the cake.

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I am not surprised that 40% of the loans will never be repaid, and lowering the bar for repayments to 18k salary may make very little difference. For many, Universityis a route to avoiding unemployment and there is pretty much no bar to admittance. On the news the other night, I noted that a lady with learning difficulties at a hostel was receiving 24/7 help from socail services with the services on offer being things like how to make a doctors appointment. But things were looking up for her as she has just be offered a three year course at University.

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I am not surprised that 40% of the loans will never be repaid, and lowering the bar for repayments to 18k salary may make very little difference. For many, Universityis a route to avoiding unemployment and there is pretty much no bar to admittance. On the news the other night, I noted that a lady with learning difficulties at a hostel was receiving 24/7 help from socail services with the services on offer being things like how to make a doctors appointment. But things were looking up for her as she has just be offered a three year course at University.

It could be worse than they think. After all, any parents who are capable of paying the fees up-front probably will do, because the terms of the loans are so onerous. So a big chunk of the better-off who may end up in high-paying jobs will not be in the system.

On the other hand, those who treat it as a 3-year holiday with the odd lecture and never plan to earn much will go for the loans.

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This student loan system was obviously going to be a case of luring millions of people in with fake expectations and legislation, and then slowly, over the years, and whenever an opportunity presents itself, change the rules and start to harvest...

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perhaps the debt will be made generational ............?

It certainly takes a lot out of the future mortgage market a decade down the line ......more than likely the type who would be in too ...... the future is going to be a hell of a different society .....

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Student loans are like no other form of personal debt. They are much larger than any other loan that an 18 year old would ever be offered. They are not secured on an asset which could be sold to clear the debt. They are index-linked so cannot be inflated away. You cannot default on them even if you declare bankruptcy, and an Act of Parliament was used to give the loans this property. Repayments are compulsorily collected directly from your paypacket.

If these terms were written into a the terms of a consumer loan by a private entity, it would be against the law. Since it's the government they can make whatever rules they like, and they can change them by Act of Parliament if they want. The fact that the government is also the creditor to these loans creates just a teeny tiny conflict of interest.

I think it's important to bear these points in mind when talking about obligations. The fact that the government is also shafting exactly the same young people via the housing market is just the icing on the cake.

Absolutely. And it's important to remember that the government itself makes some forms of education compulsory (eg Schooling to secondary level). So 'education' itself is not a privilege, as some on here seem to think.

What has happened here is that over a number of years young people have been targeted by unscrupulous corporations (FE establishments) chasing those young people's government subsidy by offering useless but attractive qualifications. The only reason these media studies type courses have proliferated is because organisations were smart enough to offer a low cost product (pretty crap basically) to gullible youngsters to grab as much government cash as possible. It's not much different from the HB addicted BTL'er or the banking industry subsidy junkies.

To offer as an answer a lifetime of debt servitude to the 'consumer' with onerous repayment terms and circumvention of the normal rule of law is just about what you'd expect from the evil b'stards in power. And the organisations are still free to market and sell whatever crap they want - only now what they are actually selling is a toxic financial product that no one but the government could get away with.

Degree mis-selling scandal coming anytime soon??

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This student loan system was obviously going to be a case of luring millions of people in with fake expectations and legislation, and then slowly, over the years, and whenever an opportunity presents itself, change the rules and start to harvest...

+1

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The thing that I can't get my head around is, that faced with a budget deficit, the government have prioritised for aid homeowners with houses valued at £600K, who are being given an interest free loan of £120K for 5 years to prevent them having to drop their property price by the same amount to sell it. In contrast, stduents have had their charges trebled and are being charged pay-day lender levels of interest by comparison.

This implies that government believes that our economic future lies more in the hands of estate agents than with science and engineering graduates.

I think i see a link.

Houses are banking assets ( or rather they support the market value of the loans). These assets are kept up in value by issuing new loans, which people cant afford, so the government must stump up.

The Student loans are supplied by a bank and they are unsupported by anything real...therefore, the thing supporting them must be forced to pay....ie, the student.

the link is lending by bankers.

One could be forgiven for thinking that the bankers had some sort of hold over us.

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Perhaps it was ill thought out in the first place. Anything is better than a NEAT. Except the NEAT living at home costs about £3,000 a year and I guess you can add fivefold to that for full time education.

You can point to less able students going on to be Equal Opportunities or Youth Workers with local councils. Considering the postion, I question if this adds to GDP, these jobs would be filled whether we had nearly half of school leavers going to University or not.

Cutting University places and creating real jobs in the private sector (with the money saved) may have better served the economy than an expensive training programme for public sector workers.

I suppose I am talking apprenticeships.

Edited by crashmonitor

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Perhaps it was ill thought out in the first place. Anything is better than a NEAT. Except the NEAT living at home costs about £3,000 a year and I guess you can add fivefold to that for full time education.

You can point to less able students going on to be Equal Opportunities or Youth Workers with local councils. Considering the postion, I question if this adds to GDP, these jobs would be filled whether we had nearly half of school leavers going to University or not.

Cutting University places and creating real jobs in the private sector (with the money saved) may have better served the economy than an expensive training programme for public sector workers.

I suppose I am talking apprenticeships.

you need a three year degree course just to be a nurse. read it in the local paper yesterday.

The course is heavy on IT the paper reports.

we are going to the dogs in a society built on entitlement and beaverisation.

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The money will not be paid back along with the rest. As someone said earlier we are racking up debt at over £100 billion a year with absolutely no plan to reduce this figure, never mind actually repaying the debt. You do not have to be a genius to see how this is all going to end.

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  • 242 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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      • up 5%



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