Student Loans 2012

setmefree2

Lokolo wrote: »

If you think inflation is going to stay at 5% for the next 3+ years then wow, rediculous to think! There's no way this will happen.

Well history shows that when countries have a debt crisis the only way out is through inflation. Who thought the MPC would allow inflation to get to 4% but they have. And they are showing no signs of trying to put it back in it's box.

Furthermore, they actually have little control over much of the current inflation in the UK as it is due to massive increases in commodity prices, tax, deflating currency, etc.

setmefree2

Lokolo wrote: »

Interest rates are expected to rise in the second half of this year which will impact inflation figures.

Indeed, higher interest rates might raise the RPI as the RPI includes mortgage interest payments

setmefree2

Lokolo wrote: »

Maybe you should pop into Savings and Investments forum and suggest that inflation will be at 5% for the next 3 years. You might learn something

What? you mean the guys who told everyone to invest in Icelandic banks? The only reason any of them still have any money is because Gordon Brown was kind to them:D

Lokolo

setmefree2 wrote: »

Well history shows that when countries have a debt crisis the only way out is through inflation. Who thought the MPC would allow inflation to get to 4% but they have. And they are showing no signs of trying to put it back in it's box.

Furthermore, they actually have little control over much of the current inflation in the UK as it is due to massive increases in commodity prices, tax, deflating currency, etc.

Yeh but who would have thought banks would need to be bailed out

And yes, but there are also other contributors towards high inflation, one of them being the VAT changes. Over the this coming months this will of course not cause huge price changes.

The one thing I don't know what will happen with is oil and petrol. Although I can't see this playing a siginifcant part in continued high inflation.

As I said, inflation will not be at 5% for years, yes months, but not years.

But if it does, interest rates will rise trying to push it back. Hopefully we won't go back to the 90s eh

setmefree2 wrote: »

What you mean the guys who told everyone to invest in Icelandic banks? The only reason any of them still have any money is because Gordon Brown was kind to them:D

That is wrong. The consumers had protection levels, however, people went over this and still expected money back. Sadly, Brown agreed to this (I wouldn't have though )

setmefree2

Lokolo are your student loans linked to inflation?

Lokolo

setmefree2 wrote: »

Lokolo are your student loans linked to inflation?

Yep of course.

The figures I posted above are the rates.

The loans interest from Sep X -> Aug X are from the previous March's RPI.

(so September 2008 -> August 2009 I had 3.8% charged which was March's 2008 RPI).

---

FYI it's most probably how your son's interest would be charged, I doubt they're going to update it every month but instead keep it to March's RPI.

setmefree2

Lokolo wrote: »

Yep of course.

So your loan is linked to RPI not CPI? How much above RPI and CPI does it go to when you start working?

My son might not have a loan. I read that only 80% of students take loans. That means 20% don't and that is under the current system.

setmefree2

Lokolo wrote: »

That is wrong. The consumers had protection levels, however, people went over this and still expected money back. Sadly, Brown agreed to this (I wouldn't have though )

They also used to tell everyone not to pay off their mortgage. Instead, they used to argue, you should in invest in the stock market!!! Funnily enough, when the stock market crashed they stopped trolling the MF board and most of them changed their usernames....

... you're right, I never go near that board, why would I want to :rotfl:

melancholly

setmefree2 wrote: »

So your loan is linked to RPI not CPI? How much above RPI and CPI does it go to when you start working?

that's a new 'special' idea for the bigger loans! currently, it doesn't change at all.

Lokolo

setmefree2 wrote: »

So your loan is linked to RPI not CPI? How much above RPI and CPI does it go to when you start working?

My son might not have a loan. I read that only 80% of students take loans. That means 20% don't and that is under the current system.

Yep I know a couple of people who don't take the loans.

And as melancholly says, the +0-3% above RPI is for your son's year onwards. Mine is literally just set at the RPI.