'Stopping graduates repaying student loans early...' blog di

setmefree2

Can anybody provide me with a link that says students are not going to pay these loans back early as I can't find any.

Thank You

pqrdef

Regshoe wrote: »

The other point to think about is that even if most students were to end up paying off their loans there will be little to no effect on the cost of education to the government for a number of years.

Looks to me like the thinking is to hand the lending off to the private sector, and this is yet another stitch-up between the Treasury and their pals in the City.

mintymoneysaver

I have two teenage daughters, one of them just starting her A levels and I feel so sorry for them. I got a grant at college in the eighties, and left with an overdraft of £500, they're going to be paying this back forever! It seems that university has changed from being something for clever people to something for rich people ( stinks a bit of private education) We have some money saved for both of them, but even if it just about paid their tuition fees, then we couldn't give them any help at all with their living costs or vice versa... but I want them to go. It's a fabulous opportunity, daughter 1 is more than capable academically and would love it, and daughter 2 wants to be a teacher...

MSE_Martin

setmefree2 wrote: »

Can anybody provide me with a link that says students are not going to pay these loans back early as I can't find any.

Thank You

Hi - that isn't in the proposals yet its something they've been looking at, and as my blog states the comment by David Willets (unis minister) is they want to do something like this. My blog is very deliberately designed to persuade against that.

Rainmaker_uk

I am absolutely disgusted with the details Martin has raised.

Some of these details tie our young generation in to a life of penuary. In what world is it unfair to pay off a loan early!!!

I am concerned that this is not being used as a way to fund universities and is more a case of stealth taxation as interest rates are high...

setmefree2

MSE_Martin wrote: »

Hi - that isn't in the proposals yet its something they've been looking at, and as my blog states the comment by David Willets (unis minister) is they want to do something like this. My blog is very deliberately designed to persuade against that.

Thank You. I do hope you manage to persuade Mr Willets that penalties are a bad thing. I don't mind the £9k fees but I would object to penalties. People not being incentivised to pay back debt is a really bad thing (look at the mess in the US because of tax relief on mortgage interest). You'd think the government would want their money back wouldn't you?

The way things are is making it so difficult to plan financially for higher education. My eldest son is in Lower 6. There is no point in us overpaying our mortgage (which is a BOE tracker + 0.9%) if our son is going to be hit with a massive loan at a very high interest rate.

I hope the government make it clear soon what their intentions are. I think the confusion and lack of clarity is very damaging.

misscousinitt

I graduated in 1994. If these rules had been in place then I would still have my student loan.

Obviously, loans were for alot less money then, but I made the decision that I would start to repay my loan as soon as I got a job not matter waht it paid. The threshold was £12000 then - I got a job paying £8000 and repayed my loan at £23ish per month for 5 years.

I would not have been very happy to still be in debt 16 years after graduating and have interest accruing just because I hadn't managed to get a job above the threshold level - not everyone enters the workplace on graduate salary.

Obviously, if you never intend to pay it back its no problem, but personnally it would worry me a great deal.

StressedOutSue

What can we do to try to stop these increased fees? In France, they were taking to the streets because retirement age was raised to 62. We cannot let this happen. I will go to see my local MP at his next surgery, but unless there is complete outrage from the British public, this government will just pass this as law. I have three daughters - one, aged 18 is at uni and loving it, 2nd is in lower sixth and working damned hard to get to a decent university, 3rd in year 10, and ditto. This is so UNFAIR. I was brought up never to have loans - the only loan we have is our mortgage. I feel so HELPLESS.

michaels

You have to laugh. Vince Cable said no fee increases, impose a graduate tax. The Tories ruled this out and have come up with something that is in effect a graduate tax...


...except those who can afford to pay up front (the very richest) can avoid the tax and just pay the fees.

Are there still going to be bursaries for the poorest so it will only be the 'middle' who will be squeezed out? Those who can control when they take their income (salary sacrifice to pension, leave money in company) will also be able to avoid the fees.

Will there be the opportunity for fees to vary by course and establishment? If so look forward to even fewer scientists and doctors as these courses must cost much more to teach than History for example.

Final question - will there be enough money to support anything like the present level of student enrolment - otherwise with the economies of scale in uni teaching their could be a general collapse of many institutions as falligng roles mean that even high fees are not enough to keep things going.

waterhouse_melons

I'm a current student, starting from this year's september. All I thought about when I heard this news was the £9000 a year, not the effects of it like you said in your article. I do see that students need to have a more efficient systsem, but this isnt the way to go about it.
My course is a 3 year course, with one year extra being used for a years job placement (4 years in all). What happens to me?
Martin, there must be something you can do to stop this madness, a MSE petition? TV articles?