Student Loans 2012

PaulW1965

setmefree2 you are in the right ball park with £6k per year. Maybe a little more in our experience. It will be great for your kids not to start life saddled with too much debt and, trust me, they will be grateful.

Investing in your kids' futures has got to be one of the best investments going.

Ignore the negative posts - some posters on this board have very large chips on their shoulders;) Sad really.

All The Best

Paul

PaulW1965

melancholly wrote: »

lol i don't think it matters how many times people say things like 'help them and educate them on financial matters and teach them practical things to live independently, but still make sure that they are making the decisions themselves (especially since they will be the ones who have to pay back the loan)', some people will hear something different!

Better if they don't have a loan in the first place.

Or haven't you bothered to read the thread?

Lokolo

PaulW1965 wrote: »

Better if they don't have a loan in the first place.

Or haven't you bothered to read the thread?

There is nothing wrong with taken out the loan, even if you need it or not.

Debt isn't bad. Bad debt, is bad.

PaulW1965

Lokolo wrote: »

There is nothing wrong with taken out the loan, even if you need it or not.

Debt isn't bad. Bad debt, is bad.

The point that setmefree2 was making was that the news loans could have very high interest rates and are, therefore, bad debt.

Why would the op want their kids saddled with loans at a bad interest rate?

Have you not read the thread either?

Lokolo

PaulW1965 wrote: »

The point that setmefree2 was making was that the news loans could have very high interest rates and are, therefore, bad debt.

Why would the op want their kids saddled with loans at a bad interest rate?

Have you not read the thread either?

I have posted numerous times and read it, numerous times. Perhaps you should? If you had, you would have seen my posts

Have you also thought about reading on how the new loans will work? The interest will only be great, when the student earns a high amount. At which point, the student could pay back the loan. In the meantime, the student could have earnt some nice interest on it.

Obviously currently, it would not be worthwile as inflation is quite high, yet interest rates are quite low. However, interest rates are expected to rise in the next year (or 2). This will rise savings rates and should lower inflation.

edit-

None of us have a chip on our shoulder btw. We are here in our own time to help. I for one, am in the same position as the OPs DS, having received money from my grandparents. I am now in a very good position. However - neither my grandparents nor parents have any interaction with my financial position apart from knowing how much I have (as I will likely be buying a house in the next year or 2).

shaggydoo

Good Luck with your "valiant endeavours" setmefree2!

I wish my parents had helped me lol

PaulW1965

Lokolo wrote: »

At which point, the student could pay back the loan.

Students are not going to be able to pay back the loan. THAT's the POINT!!!!!

Do you still think you should be "helping" people?

Lokolo

PaulW1965 wrote: »

Students aren't going to be able to pay back the loan. Do you still think you have read the thread:cool:

FYI

http://www.bis.gov.uk/studentfinance

The Government is committed to the progressive nature of the repayment system. It will consult on potential early repayment mechanisms so that people on high incomes are not able to unfairly buy themselves out of this progressive system. These mechanisms would need to ensure that graduates on modest incomes who strive to pay their contribution early through regular payments are not penalised.

PaulW1965

University leaders today criticised proposals to penalise graduates who pay off their student loans too quickly.Mortgage-style redemption penalties could be brought in to discourage paying off loans early to avoid high interest rates but the Association of Teachers and Lecturers said this would mean a lifetime of debt for every university student.

He also promised to close a loophole allowing high-earning graduates to see their debts off quickly, which would have resulted in them paying less than their poorer counterparts, who would have to spread their repayments over 30 years. He is considering charging a fee for paying off loan debts early.

If you don't take the loan you won't have to pay the high interest rates or the penalties. Simples.

Better not to take the loans at all

Lokolo

PaulW1965 wrote: »

If you don't take the loan you won't have to pay the high interest rates or the penalties. Simples.

Better not to take the loans at all

Honestly, I trust the government site rather than one from The Independant which is 3 months old.

The article heading is also "Graduates who pay off their loans early may face penalty".