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Teachers To No Longer Buy Houses


bendy

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HOLA441
The union’s calculations are based on the assumption that an average teacher starting out in the profession in 2015 would have an initial debt of almost £50,000, made up of three years of tuition fees plus maintenance loans and compound interest....

At this point, ATL has calculated that the average teacher at the top of the upper pay scale would have forked out more than £52,000 in repayments. However, it reckons that the government would still be left with a massive shortfall of £111,000 for every teacher, due to the interest accumulated during the previous three decades. ...

“It’s another off-putting factor for people who are thinking of going into teaching,” he said. “We’ve got pay freezes, increases in pensions contributions and now higher student loan repayments. If you really want to buy your own house, you’re not going to go into teaching....

The assumptions on which ATL’s calculations are based – that the teacher’s salary would increase by 2 per cent each year, with interest on the outstanding loan balance simultaneously going up by 5 per cent annually (on the basis of the RPI measure of inflation being 2 per cent) – are by no means set in stone.

Pretty decent assumptions IMO. A 40k career job and no chance of more debt to add to your debt!

http://news.tes.co.uk/news_blog/b/weblog/archive/2013/11/05/teachers-quot-will-never-pay-off-their-student-loans-quot-and-could-cost-the-government-163-110k-each-union-claims.aspx

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When I attended University in the late 90s, PGCE students nearly all seemed to be graduates from a year or two before who'd discovered that didn't have a hope of getting more than an entry level McJob. The 'low' starting salaries therefore were a big upgrade for them. I expect it's even more like that now.

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When I attended University in the late 90s, PGCE students nearly all seemed to be graduates from a year or two before who'd discovered that didn't have a hope of getting more than an entry level McJob. The 'low' starting salaries therefore were a big upgrade for them. I expect it's even more like that now.

I was dating a, just graduated, teacher back then - she'd just got a mortgage on a 2 bed terrace - she can probably retire now.

Edited by slacker
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But what job does pay enough for 20 somethings to have a hope of buying their own house? Even a hospital consultant would have a problem in many parts of London.

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Does anyone know what the maths are behind these student loans are they meant to be paid off? If they aren't paid off what's the plan who picks up the loss?

Not really a loan.

Just a mechanism for a directed tax.

Ultimately the principal will end up on the bank of england balance sheet.

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My advice to IT grads would be

Go West! Where Ryan Flight are cheap....

Go West! Where the house are cheap....

......

Outside the UK tax man can't touch you for student loan repayments... You would have to be a right idiot to a) tell him where you are B) tell him how much you earn and c) writ him a check.

After all it's just money they magic out of the air and charge you interest on. I can't condemn anyone for signing up to such an agreement then defaulting on it.

don't give me that shite about it costing the tax payer as the money never existed until the student borrowed it anyway!

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Outside the UK tax man can't touch you for student loan repayments... You would have to be a right idiot to a) tell him where you are B) tell him how much you earn and c) writ him a check.

They have data sharing agreements with other governments so when you return to uk they work out what you earned and then bill you, afaik

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Here is the tweet:

RBS Press Office (@RBS_PressOffice) tweeted at 0:01 pm on Mon, Nov 11, 2013:

73% of applicants are first time buyers and 78% are under 35. A high proportion are teachers (75) or engineers (83).

(https://twitter.com/RBS_PressOffice/status/399869512704487426)

I read that as 75/1075 approvals.

What's worse is the ******wit engineers? I didn't think there were 83 engineering jobs left, let alone that many wanting h2b.

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They have data sharing agreements with other governments so when you return to uk they work out what you earned and then bill you, afaik

How could a private company the student loans company share data with all worldwide revenue / income tax departments. It's a facllacy, they just don't do it and that is why the student loan default rates are so high.

It is not unheard of for people to move from Europe to the UK, borrow on a student loan and then return home infact you would be stupid not to.

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How could a private company the student loans company share data with all worldwide revenue / income tax departments. It's a facllacy, they just don't do it and that is why the student loan default rates are so high.

It is not unheard of for people to move from Europe to the UK, borrow on a student loan and then return home infact you would be stupid not to.

You sound a bit worried TBH.

Just keep telling yourself it'll be ok.

Remember Student Loans have their own Act of Parliament so it'll be child's play to amend it to add draconian clauses in future.

Do you really want to find yourself arrested for non-payment of debt in ten years time whilst trying to board a connecting flight at heathrow? It won't be much fun sitting in a cell working out how you are going to pay back the entire debt (maybe £50k plus, perhaps even more with penalties and cost awarded) whilst keeping your back to the wall and worrying about why your cell mate is called 'Big Bob' when he isn't that tall, and why is he smiling at you like that.

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How could a private company the student loans company share data with all worldwide revenue / income tax departments. It's a facllacy, they just don't do it and that is why the student loan default rates are so high.

It is not unheard of for people to move from Europe to the UK, borrow on a student loan and then return home infact you would be stupid not to.

Surely no one could design something like that and not forse it happening?

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You sound a bit worried TBH.

Just keep telling yourself it'll be ok.

Remember Student Loans have their own Act of Parliament so it'll be child's play to amend it to add draconian clauses in future.

Do you really want to find yourself arrested for non-payment of debt in ten years time whilst trying to board a connecting flight at heathrow? It won't be much fun sitting in a cell working out how you are going to pay back the entire debt (maybe £50k plus, perhaps even more with penalties and cost awarded) whilst keeping your back to the wall and worrying about why your cell mate is called 'Big Bob' when he isn't that tall, and why is he smiling at you like that.

:P Why would they chase the debt overseas when they can print some more and write the debt off? As other posted have said it's just a graduate tax.

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