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Tuition Fees: Three Quarters Of Students Won’T Be Able To Pay Off Their Debt

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http://www.independent.co.uk/news/education/higher/tuition-fees-three-quarters-of-students-wont-be-able-to-pay-off-their-debt-9866446.html

The current university funding system is unsustainable because of the high number of students who will never be able to afford to pay off their loans after graduating, according to a major new report.

Student debt is now so high compared to average salaries that many graduates in respectable public sector professions will be unable to repay their fees even by the end of the 30-year repayment period, the Higher Education Commission warns.

This funding "black hole" is forcing the Government to indirectly subsidise higher education writing off billions of pounds in student debt - even though the point of £9,000 a year fees was to make universities less reliant on the taxpayer.

The commission, an independent body set up to monitor higher education, concludes that the current university fees system offers the “"worst of both worlds" to students, universities and the Government - and warns that some institutions are now at risk of "failure".

"We have created a system whereby everybody feels they are getting a bad deal," report authors warn. "This is not sustainable."

The commission says it is particularly concerned about the future level of student debt with financial experts estimating that 73 per cent of all students will still be unable to pay off their loans after 30 years, when debts are automatically wiped.

According to the Institute for Fiscal Studies, the average student debt will be £44, 015 - higher even than the US.

"The Commission is particularly concerned that middle earners, such as health professionals, teachers or public sector workers who need a degree to enter their profession will not be likely to pay back their loan within the repayment period," it says.

"The Commission fundamentally questions any system that charges higher education at a rate where the average graduate will not be able to pay it back.

"We are deeply concerned that the Government may have created a loan repayment system where, for example, a teacher is unable to secure a mortgage at age 35 because of the high level of monthly loan repayment."

HE is in a bubble which is now relying on massive credit expansion. Luckily history teachers us this is fecking stupid.

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The cost and rewards of HE should be split 3 ways: student, uni + government.

The income of unis + lecturers should be linked to how much their students pay in UK taxes.

How about having the uni pension funded by taxes paid by old students?

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Anyone know if there is an age limit to a student loan....for all those potential mature students that have never entered any kind of university or learning establishment past the age of 16 before?

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Anyone know if there is an age limit to a student loan....for all those potential mature students that have never entered any kind of university or learning establishment past the age of 16 before?

think its forgiven at retirement age.

There were stories of old codgers signing up to uni just to get the loans a couple of years back...only to default on them a few months later.

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How about having the uni pension funded by taxes paid by old students?

University staff are among the few public sector workers with funded pensions, see http://www.uss.co.uk/Pages/default.aspx

Unfortunately the big public sector employers like the NHS, schools, and police are all completely unfunded and their pensions will be paid out of future tax revenues, assuming a future government is willing and able to do so.

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University staff are among the few public sector workers with funded pensions, see http://www.uss.co.uk/Pages/default.aspx

Unfortunately the big public sector employers like the NHS, schools, and police are all completely unfunded and their pensions will be paid out of future tax revenues, assuming a future government is willing and able to do so.

I saw that..maybe you missed this from the funding section:

The USS trustee is currently carrying out a formal valuation of the scheme’s assets and liabilities, and we anticipate, as previously stated, that the trustee shall continue to report a substantial deficit.

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I saw that..maybe you missed this from the funding section:

The USS trustee is currently carrying out a formal valuation of the scheme’s assets and liabilities, and we anticipate, as previously stated, that the trustee shall continue to report a substantial deficit.

Indeed, USS is not well, but at least it exists. The government is not putting aside a single bean for millions of public sector workers. It is likely that many/most of those workers have a series of nasty shocks coming as future governments start defaulting on their public sector pension promises.

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Meanwhile, luvvie Myleene Klass is complaining about having to pay a few thousand pounds in mansion tax on her unearned millions. No wonder this country is so screwed.

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And will they be able to service this debt and a mortgage/rent and a car loan and pay all their living expenses? No. The ponzi needs new blood. Maybe we need more immigrants.

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think its forgiven at retirement age.

There were stories of old codgers signing up to uni just to get the loans a couple of years back...only to default on them a few months later.

Tis true a pensioner can take out a student loan and most pensions would not be sufficient to start repaying it......makes you think that an eduction is not only so you have a greater earning potential, it is also good for the mind however old you are. Edited by winkie

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Meanwhile, luvvie Myleene Klass is complaining about having to pay a few thousand pounds in mansion tax on her unearned millions.

I always thought she worked hard ... here she is advertising herself, jewellery, underwear and cream cakes all at the same time!

myleene-klass.jpg

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University staff are among the few public sector workers with funded pensions, see http://www.uss.co.uk/Pages/default.aspx

Unfortunately the big public sector employers like the NHS, schools, and police are all completely unfunded and their pensions will be paid out of future tax revenues, assuming a future government is willing and able to do so.

I saw that..maybe you missed this from the funding section:

The USS trustee is currently carrying out a formal valuation of the scheme’s assets and liabilities, and we anticipate, as previously stated, that the trustee shall continue to report a substantial deficit.

USS has got, IIRC, something like a £11bn black hole if I remember correctly. They are currently carrying out a consultation on a potential restructure of the final salary part of the scheme.

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Indeed, USS is not well, but at least it exists. The government is not putting aside a single bean for millions of public sector workers. It is likely that many/most of those workers have a series of nasty shocks coming as future governments start defaulting on their public sector pension promises.

No they will just debase the pound in order to pay them what is promised in nominal pounds; it will just be materially less as measured in barrels of oil, tons of wheat, ounces of gold or swiss francs.

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No they will just debase the pound in order to pay them what is promised in nominal pounds; it will just be materially less as measured in barrels of oil, tons of wheat, ounces of gold or swiss francs.

THIS

Pound debases, so salaries will rise until every earner is above the repayment 'cap'. Interest on the loans will have rolled up to a material sum even post pound debasement. All those students thinking 'I'll have to be rich to have to start paying it back' will find themselves bent over a chair and royally ******ed. The sensible ones will emigrate.

In conclusion, less money to spend on the high street, more stress, more relationship breakdowns, less kids as people delay, less house price inflation, more emigration of the bright ones to be replaced by low quality migrants.

What a shockingly evil way to run a country. I will NEVER vote LIBLABCON again.

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What a shockingly evil way to run a country. I will NEVER vote LIBLABCON again.

Does make you wonder ...

Monster Raving Loony party: Ukip 'stealing our thunder' Ahead of the Rochester and Strood by-election, the Monster Raving Loony party promises an even less sane manifesto than usual

http://www.telegraph.co.uk/news/politics/11182737/Monster-Raving-Loony-party-Ukip-stealing-our-thunder.html

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Tis true a pensioner can take out a student loan and most pensions would not be sufficient to start repaying it......makes you think that an eduction is not only so you have a greater earning potential, it is also good for the mind however old you are.

I guess University was always about the experience and not the vocation. Who are we to deny the grannies the rite of passage they never got, or should that be the peaceful passage onto death.

Edited by crashmonitor

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It's been clear that the idea that the average borrower would be able to earn enough to repay their debts was fanciful in the extreme. Simply maths implies that someone who has borrowed £9k per annum for 3 years has to walk into a job paying not far shy of £40k simply to prevent their debts rising (assuming on-target RPI as the debt attracts an interest rate of RPI+3%).

For those that never reach the repayment threshold they could be carrying liabilities commensurate with some measures of average house prices by the time write off occurs.

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This is no surprise; when the second tripling of fees to £9000 p.a. was announced my first thought was that the loans will not be repaid. Prices have somewhat less than doubled since the £1000 p.a. 'contribution' came into play. If Blair had intended to increase the amount students pay it would have been reasonable to apply a formula such as an RPI + 5% increase annually to slowly but steadily change contribution levels. A ninefold increase in a few years is a ridiculous nonsense. So the government will 'lend' ad infinitum much of the money, but add to that massive administrative costs, profits for middlemen as the loan books are sold on, and endless debates and arguments about the injustice of it all.

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Not another subsidy....buy now pay later or not at all....promises who would believe it? ;)

Students get the not at all bit...believe you me. Few would go to university if it wasn't 75% free and if they really thought they had to pay for it in the end. A 75% subsidy going to landlords and gold plated University pensions and salaries. It's a Blairite dream.

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Apparently people like the Monster Raving Loonys thinking that UKIP is stealing their thunder.


http://

ukip.trendolizer.com/2014/10/monster-raving-loony-party-ukip-stealing-our-thunder---telegraph.html

Edited by billybong

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