'Don't pay your kids tuition fees upfront' Discussion Area
Comments
-
Oldernotwiser wrote: »I really don't think that life comes with many guarantees.
That's your opinion and I respect that.
However, the guide doesn't mention that its fundemental assumption is that the MSE team 100% believe that the government will never alter the T & Cs of the 2012 student loans and therefore all its calculations are based on that assumption. It doesn't even mention that the government reserves the right to alter the T & Cs.
Do you think that is right? It lists all other assumptions why not this? Why isn't it even mentioned?
It may be construed that the absence of mentioning this might make the guide a tad misleading?
Just my humble opinion of course.0 -
That's your opinion and I respect that.
However, the guide doesn't mention that its fundemental assumption is that the MSE team 100% believe that the government will never alter the T & Cs of the 2012 student loans and therefore all its calculations are based on that assumption. It doesn't even mention that the government reserves the right to alter the T & Cs.
Do you think that is right? It lists all other assumptions why not this? Why isn't it even mentioned?
It may be construed that the absence of mentioning this might make the guide a tad misleading?
Just my humble opinion of course.
Genuine question.
Can't any lender change its terms and conditions?0 -
Oldernotwiser wrote: »Genuine question.
Can't any lender change its terms and conditions?
No
Another thing. ML is the head of a task force which has the mission to explain all things 2012 student loany LINK . Maybe he can explain to us why this clause is in the SL agreement. To me it's very existence suggests that a future government may well change the T & Cs of the loans.... if they are not going to change the T & Cs why does the clause even exist? 0 -
That's your opinion and I respect that.
However, the guide doesn't mention that its fundemental assumption is that the MSE team 100% believe that the government will never alter the T & Cs of the 2012 student loans and therefore all its calculations are based on that assumption. It doesn't even mention that the government reserves the right to alter the T & Cs.
Do you think that is right? It lists all other assumptions why not this? Why isn't it even mentioned?
It may be construed that the absence of mentioning this might make the guide a tad misleading?
Just my humble opinion of course.
I agree here. We all know that nothing in life is certain, but everyone should be aware what they are signing up to. That responsibility should ultimately lie with the person signing up for it. Now as tuition fees are set to soar next year I think more students and parents are taking a closer look at all the information that is available. It is all out there, but I would assume the govt would rather we didn't notice this clause.
I am sure the government can do what it likes with our taxes, pensions, retirement ages etc., but we can still feel uneasy about the student loans terms for our children. I know a social worker who works part time and never usually gets over the £15,000 wage. She sees her loan going up with inflation and some interest and it worries her sick as she doesn't like debt. She was brought up in a family that never had any debt or much money. To ease her conscience she pays £50 a month off it, as she feels she should be paying it back. I can't convince her otherwise and am beginning to think yes you pay it back you are not going to be penalised for it, unlike under the new loans where we still don't know whether you will be. A lot of people just hate being in debt. Sorry going a bit of course there from the original thread.
I am glad ds3 is not set to go to uni for another 3 years, they might have decided the full terms and conditions of it all by then.:mad:Total weight lost 6.5/73lbs starting yet again. Afds August 10/15. /8 Sept.0 -
The principal purpose of the guide is to help people make informed decisions based on the information available now. Telling people that there is no guarantee doesn't help people make a decision. There might be merit in raising attention to the fact that this clause exists but I don't think the guide is the place for that.
A similar thing has been done previously. If I remember correctly, the Government added a clause to the student loan regulations allowing them to set no interest rate. They made this clause in preparation of the fact that a negative rate of interest would have been applied as RPI was negative. Instead they decided to set no interest rate, making the rate 0% instead.0 -
While I'm not happy with the clause about changing the T&Cs I can see the point in having it in cases like atypical's example above. I'm certainly not shivering with fear about it and to be fair I don't think it would be especially helpful to mention it in the guide as it would muddy the waters and possibly unecessarily scare the people ML is seeking to reassure. OK something bad could happen with future governments and SLs but if it does I think it would be in the context of even bigger economic problems than we are facing at the moment.0
-
No
Another thing. ML is the head of a task force which has the mission to explain all things 2012 student loany LINK . Maybe he can explain to us why this clause is in the SL agreement. To me it's very existence suggests that a future government may well change the T & Cs of the loans.... if they are not going to change the T & Cs why does the clause even exist?
I'm sure you know more about finance than I do but, if you're right, how can this be true?
http://www.moneyweek.com/personal-finance/mortgage-lenders-change-their-terms-434310 -
The principal purpose of the guide is to help people make informed decisions based on the information available now.
The information available now is that there is a clause in the student loan agreement that means the government can do what they like in the future. If you ignore that little nugget of info how can you say anyone is making an "informed decision". They are making an "uninformed" decision and are possibly being misled.
Maybe you think this clause is irrelevant but we are all grown ups. We can decide for ourselves whether we think it is pertinent.
MLs stated aim is
Not mentioning this clause means he isn't ensuring everyone understands what they're getting into imho.to help ensure everyone understands exactly what they’re getting into – the good bits and the bad.0 -
While I'm not happy with the clause about changing the T&Cs I can see the point in having it in cases like atypical's example above. I'm certainly not shivering with fear about it and to be fair I don't think it would be especially helpful to mention it in the guide as it would muddy the waters and possibly unecessarily scare the people ML is seeking to reassure. OK something bad could happen with future governments and SLs but if it does I think it would be in the context of even bigger economic problems than we are facing at the moment.
Sounds to be like you are suggesting that MSE should deliberately mislead people to prevent them getting scared?
Frankly, I'm shocked. I honestly had no idea MSE was like this.
Well I guess I should go find information elsewhere.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards