UK Graduates could 'pay back double their student loans'
47 replies, posted
[quote]Some graduates could end up paying back double their original student loans under the new fees system in England, figures calculated for the BBC suggest.
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.
Under the regime, due to begin in 2012, graduates will pay back 9% of earnings above £21,000 for up to 30 years.
From 2012, universities will be able to charge up to £9,000 per year, which will be paid upfront by the government but paid off once the student starts earning £21,000 or more.
Students will also be able to take out maintenance loans ranging from £3,575 to £5,288, depending on their family's income.
Interest on the loan is expected to range from inflation only, to inflation plus 3%, with higher earners paying higher interest.
After 30 years, any unpaid debt is written off.
The accountancy firms, which include Baker Tilly, modelled the payments for BBC Breakfast over the lifetimes of three fictional students.
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.[/quote]
[url]http://www.bbc.co.uk/news/education-12767850[/url]
In short, they plan to make it so that if you earn over £21,000 you have to [b]pay back 9% of anything you earn[/b] back to the government, regardless of amounts, for [b]THIRTY YEARS[/b].
Frankly it's preposterous. A loan is supposed to be a fixed rate repaid in certain period with a certain rate (%) tagged on, so that the bank can make money. This rate is usually fair (9-16%) although higher in cases.
With this move the government is set to make back a total £86,000 on a £39,000 Loan for 3 years tuition, which is way over 100% back.
Why preposterous? [b]Driving hard-working graduate students into a world of debt with loans and mortgages whilst people still sit back refusing to work and getting £100 a week, with no intention of ever lifting a finger to do a useful days work again.[/b] That's why.
[QUOTE=SCopE5000;28653126]Why preposterous? [b]Driving hard-working graduate students into a world of debt with loans and mortgages whilst people still sit back refusing to work and getting £100 a week, with no intention of ever lifting a finger to do a useful days work again.[/b] That's why.[/QUOTE]
But those people are oppressed proletariat who need our support because it is society's fault that they don't work and not their own fault in fact we must tax everyone else more and give more money to them only then can we have utopia of proletariat communist socialist paradise with ice cream and unicorns.
Ugh.
-snip-
This will only make unemployment higher. Sigh.
What the FUCK. This is terrible.
You poor? Well either stay dumb or later give us money for most of your life.
[quote]After 30 years, any unpaid debt is written off.[/quote]
So... just don't pay it for 30 years. :v:
College is a myth anyways. Get training for top notch blue collar jobs that are in high demand. Then go to college later on once you actually have some cash saved up.
These are loans though, right? So no one is REQUIRED to do this are they?
The main problem I see with this is that it sends the wrong message to the people who need the most help. The well off won't need loans, so you don't need to worry about the message you're sending them.
However, to the person who might be the first in their family to attend a university, you are saying "That's right, get educated and get a good job! Then you can owe us tons of money for decades!". The message should be "Get educated, get a good job, and YOU and your family will reap the benefits".
[QUOTE=cqbcat;28653261]College is a myth anyways. Get training for top notch blue collar jobs that are in high demand. Then go to college later on once you actually have some cash saved up.[/QUOTE]
It'll never happen though.
[QUOTE=Explosions;28653158]But those people are oppressed proletariat who need our support because it is society's fault that they don't work and not their own fault in fact we must tax everyone else more and give more money to them only then can we have utopia of proletariat communist socialist paradise with ice cream and unicorns.[/QUOTE]
You sound like you've JUST came out of a sociology lesson.
I was fucked money-wise before the tuition fees were planned to rise. Then when they were confirmed to rise I was double-fucked. Hell, now I'm triple-fucked.
Dear UK government: I'm running out of orifices to be fucked in over here.
[QUOTE=Ali Legend;28653445]I was fucked money-wise before the tuition fees were planned to rise. Then when they were confirmed to rise I was double-fucked. Hell, now I'm triple-fucked.
Dear UK government: I'm running out of orifices to be fucked in over here.[/QUOTE]
Don't worry, they will fuck you in your smaller holes too
[QUOTE=Explosions;28653158]But those people are oppressed proletariat who need our support because it is society's fault that they don't work and not their own fault in fact we must tax everyone else more and give more money to them only then can we have utopia of proletariat communist socialist paradise with ice cream and unicorns.[/QUOTE]
My keyboard is soaked in mountain dew.
If I do a degree, I'll most likely stay for a few years try and pay back some of my loan then just move country.
[QUOTE=Rosek;28653611]If I do a degree, I'll most likely stay for a few years try and pay back some of my loan then just move country.[/QUOTE]
I don't know about laws, but isn't that illegal? That way you can finish uni and move out.
If you live abroad for over 6 years the debt is supposedly written off. Or so I heard.
[QUOTE=johan_sm;28654900]I don't know about laws, but isn't that illegal? That way you can finish uni and move out.[/QUOTE]
I don't think so, I'll check before I ever do it though. :v:
I'm glad they have it set up to where if you can't afford to pay your loan off, you can take out another loan to help pay for it...
Why are they doing all these super obvious "universitys only for rich" moves? Was there some sudden wave of inspiration throughout the government to make it impossible for any one who isnt the child of some one in the government to get any qualifications?
[QUOTE=Squad;28655919]I'm glad they have it set up to where if you can't afford to pay your loan off, you can take out another loan to help pay for it...[/QUOTE]
Yo student dawg, I heard you like paying loans so we put a loan in your loan so you can pay more while paying more.
[QUOTE=Lust;28656080]Why are they doing all these super obvious "universitys only for rich" moves? Was there some sudden wave of inspiration throughout the government to make it impossible for any one who isnt the child of some one in the government to get any qualifications?[/QUOTE]
"Hi, we're the conservatives..."
Fucking TORIES :argh:
At least you have access to loans as a student in the first place...
[QUOTE=Explosions;28653158]But those people are oppressed proletariat who need our support because it is society's fault that they don't work and not their own fault in fact we must tax everyone else more and give more money to them only then can we have utopia of proletariat communist socialist paradise with ice cream and unicorns.[/QUOTE]
What.
Thank god i finish uni this year and paid for my tuition in advance! Still, got the maintenence to pay off :/
[quote]Ministers are currently consulting on whether there should be penalties for repaying the loans early, he said.[/quote]
Admittedly i'm not an expert on financial matters, but is this really as fucked up as it seems?
The education you get in uni is probably worth less than how much you pay.
[QUOTE=Sgt Doom;28656301]Admittedly i'm not an expert on financial matters, but is this really as fucked up as it seems?[/QUOTE]
no, this is very common especially in mortgages.
see if someone is paying off their debt early, the bank or loaner doesn't make as much money in interest, so they generally have penalties to dissaude people from paying early
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