tuition fees - cap raised to £9k

Radiantsoul

lynzpower wrote: »

It is a debt in the sense that
a) its acruing interest
b) it goes against you as outstanding unsecured debt when you go to get a mortgage

I wonder whether it would be write-off-able if the loan book is transferred to a seperate company

The real interest rate is zero for those on lowish incomes.
I am not sure lenders are likely to view it in the same way as a credit card debt. Although the fact it is deducted from salaries means that lenders ought to be wary as it will be preferred to secured debts.

ruggedtoast

Non STEM courses (Science etc) will now receive no funding at all from the government. There is no university out there that can afford to only charge £6000, let alone less than that.

Shorn of funding, course fees across the board willl have to be at least £7000 or we cant run the courses. And that is pushing it.

The criteria for charging over £6000 are not even quarter baked, they are basically a meaningless sop to try and make Russell Group universities appear to care about widening participation (which they do not and never will) so they can charge £9000.

Its a fcking disgrace and the shower of sh|t that the Lib Dems are for backing this cluster fck has pretty much ensured they will not be getting my vote again.

Masomnia

lynzpower wrote: »

It is a debt in the sense that
a) its acruing interest
b) it goes against you as outstanding unsecured debt when you go to get a mortgage

I wonder whether it would be write-off-able if the loan book is transferred to a seperate company

As I understand it the debt doesn't appear on credit reports and doesn't affect other borrowings.

The previous government did sell off the loan book, or at least were trying to and I don't think that actually had any impact on the terms of the loan.

torontoboy45

these basic tenet of my thread - regardless of the actual fee figure - is this: a massive hike (let's say a doubling) of the fees will impact heavily on post-grads.

they will take on the debt themselves (absolute min £21k) and service it from +21k earnings
or
they will raid the bank of ma and pa.

either way, the ftb deposit moves further away from them.

not pretty from where I'm standing and likely to weaken the housing market further - to what extent I'll leave the rest of you to decide.

Radiantsoul

torontoboy45 wrote: »

these basic tenet of my thread - regardless of the actual fee figure - is this: a massive hike (let's say a doubling) of the fees will impact heavily on post-grads.

they will take on the debt themselves (absolute min £21k) and service it from +21k earnings
or
they will raid the bank of ma and pa.

either way, the ftb deposit moves further away from them.

not pretty from where I'm standing and likely to weaken the housing market further - to what extent I'll leave the rest of you to decide.

Assuming that strenthenning the housing market ought to be an aim of government it seems odd to claim that this is best achieved by funding higher education.

lemonjelly

Radiantsoul wrote: »

Assuming that strenthenning the housing market ought to be an aim of government it seems odd to claim that this is best achieved by funding higher education.

I think there are a few here who would debate that this should be the aim of government...;)

lemonjelly

For those who are interested, here is a transcript of the actual speech given by Willetts:
http://www.bis.gov.uk/news/speeches/david-willetts-statement-on-HE-funding-and-student-finance

lynzpower

also, just been reminded on radio 4- that if anyone dares to pay off the loans early- they will get a penalty charge for doing so!!

LOVELY :money:

lynzpower

Masomnia wrote: »

As I understand it the debt doesn't appear on credit reports and doesn't affect other borrowings.

The previous government did sell off the loan book, or at least were trying to and I don't think that actually had any impact on the terms of the loan.

no it does. when I got my mortgage, Abbey (as was) took the amount I had outstanding on student loans and reduced the amount they were willing to lend on that basis. I answered a thread about this in mortgages a few days ago and many people in that thread says its thier experience too.

The conservatives have said, clearly, that the interest rate will rise, having some pc issues but will try to find a reference to it .

lynzpower

Heres something about the penalty: "A redemption penalty would stop the better-off avoiding higher interest rates by paying off a loan early – and would be seen as a sop to Liberal Democrats who have been criticised over the tuition fees rise after signing a pre-election pledge to scrap them altogether.
Lord Browne, the former head of BP who led the review, had suggested that no redemption penalty be imposed.
But Vince Cable, the Business Secretary, confirmed that ministers were examining ways to make the new system more "progressive"."

http://www.telegraph.co.uk/education/universityeducation/8084779/Penalty-for-graduates-who-pay-off-student-loans-early.html
http://www.davidwilletts.co.uk/2009/10/05/conservatives-will-provide-an-extra-10000-university-places-next-year/
David willets has changed his mind, this is from his own website

The Conservatives are today announcing plans to create an extra 10,000 new university places next year to help tackle youth unemployment and prevent a repeat of this year’s crisis in university applications. Thousands of new university places would be paid for by introducing an early repayment bonus for existing graduates repaying their debts to the taxpayer ahead of schedule. This would fund an extra 10,000 additional university places next year to help tackle the short term crisis.

2 brains- 2 minds more like!! how can you trust eh?