Career development loan-are they irresponsible lending

vaporate

Banks need to reject ppl even with good credit reports/income.

Course they wont though cos of money making interests, even if the requested loan is woefully inadequate for the individual(s).

Northern_girl_2

It might not be the most ethical lending but ultimately the person doing the borrowing has to take responsibility.

It seems like another financial product where the criteria for getting a loan have been slackened considerably. When I was looking into them they wanted evidence of how the course would lead to higher earnings etc to demonstrate that it really would be a smart 'career development' move. For example, you could get one to do a the LPC to become a solicitor because there was a good chance of higher earnings further down the line.

However, when I was looking into it there were 'official' CDL loans which were government supported but others that were badged very similarly without some of the beneficial terms and checks.

EllaKeat

Originally Posted by dmg24
I am not aware that they accept kids at universities?

Apologies, I should have said Young People? Young Adults? Adults lacking life experience? Kids was an affectionate term, not a slur.

Why is it always someone else who is supposed to control it at some point? I aint even going to mention personal responsibility again, its wearing thin.

BLT - I do agree with you on this one,as per my first sentence. The point I was trying to make is that every "Young Adult" is encouraged to think that the only way to progress through life is to go to Uni/get a degree/ continue further education. This needs to stop. All it is doing is producing a lot of graduates with near to useless degrees and a shed load of debt. If funding/loans/grants were not handed out as a matter of course, but were actualy targeted more effectively, surely everyone would gain?

All degrees are useless to a 'degree' in a time of a recession.

This superiority of a degree over another needs to go.

Childish.

No, sorry, not childish, merely my opinion. Madonna Studies, knitwear and beauty therapy degrees just don't compare with, for example an engineering degree.

It's sad for your son and for the many other young people who have been encouraged to get heavily into debt by taking degrees that transpire to offer no job at the end. It didn't take a rocket scientist to see this coming.

But of course a teenager with a dream to fulfil is easy prey to falling for the dream. It's very sad that a stupid government thought the country needed 40 - 50% school leavers to go to university... especially to do some of the futile courses they have done. It was the last government that was irresponsible.

Spot on Treliac - exactly what I was trying to say!

vaporate

EllaKeat wrote: »

Apologies, I should have said Young People? Young Adults? Adults lacking life experience? Kids was an affectionate term, not a slur.

BLT - I do agree with you on this one,as per my first sentence. The point I was trying to make is that every "Young Adult" is encouraged to think that the only way to progress through life is to go to Uni/get a degree/ continue further education. This needs to stop. All it is doing is producing a lot of graduates with near to useless degrees and a shed load of debt. If funding/loans/grants were not handed out as a matter of course, but were actualy targeted more effectively, surely everyone would gain?

No, sorry, not childish, merely my opinion. Madonna Studies, knitwear and beauty therapy degrees just don't compare with, for example an engineering degree.

Spot on Treliac - exactly what I was trying to say!

Yeh thats right pick the blatant ones, go figure.

idiot.

Oldernotwiser

EllaKeat wrote: »

Some sort of responsible lending needs to be put in place to fund genuinely useful courses. If that applied, then by all means, let students study whatever subject their hearts desire - but must provide the means up front to do so. Result? Less student debt, more realistic expectations and less defaults.

So the only students who should be able to study English, History, Philosophy etc should be those from wealthy families? Tell me again which century we're living in!

dmg24

LesleyHead wrote: »

Sorry I deleted this while trying to correct it!!! Normal loans are not encouraged and part funded by the government! working in Tescos would not pay his London rent, loan repayment and allow him to eat. He's not lazy he's working hard to pay it back and still trying to get acting work in between.

LesleyHead wrote: »

My son was 19 and adult and made his own decision to apply. he might have been misguided but he wants to follow his chosen career, nothing we as parents could have said would stop him. We have allowed him to make his own choices

The key through all of this is choice. Irrespective of how the loans are set up, he chose to take it out. He chooses to live in London. He could considerably reduce his living costs by moving but he chooses not to.

It could be worse. If the CDL was not available he may have taken out a commercial loan at an even higher interest rate.

Out of interest, where did he study?

dmg24

Oldernotwiser wrote: »

So the only students who should be able to study English, History, Philosophy etc should be those from wealthy families? Tell me again which century we're living in!

This has got me thinking too - what is a genuinely useful course? Do we then limit the funding to the amount of jobs available in that area?

Bonkers.

PasturesNew

dmg24 wrote: »

I am not aware that they accept kids at universities?

Oxford will take them at 12-13:
http://www.guardian.co.uk/education/2002/jul/11/highereducation.uk2

PasturesNew

You can study a surfing degree where I live.

Re the CDL, an adult takes a risk that they are the right sort of person to be able to land a job in XYZ if only they have this piece of paper. Some do, some don't.

He took a risk, it's not paid off ... yet. It still might in the future though, you can't tell.

The alternative is to not take the risk, just in case ... (that's my preferred option as it doesn't involve borrowing) ... which also has a low success rate.

At least your boy tried OP.

Don't blame the banks or the system. Your boy's just not been lucky yet.

drbesty

I don't see how it can be irresponsible lending, what does a bank get out of lending money to someone who then can't afford to pay it back?