Student Loans 2012

melancholly

http://www.timeshighereducation.co.uk/story.asp?sectioncode=26&storycode=416405&c=1

there wasn't a THES article yesterday, but the one today is interesting. the comments at the bottom are also quite amusing..... i'm liking the idea less and less!

setmefree2

£70bn student debt timebomb: Money owed will TREBLE in four years


Student debt will treble to a staggering £70billion in four years because ministers underestimated the number of universities charging maximum fees, an official report will say today.
The scathing analysis from the Public Accounts Committee blames ministers for pushing up fees to £9,000.
MPs found that, in just four years, overall student debt will increase from the current £24billion to £70billion.

The sum – the equivalent of as much as £50,000 a student – could prohibit many from getting a mortgage or a pension.
The report also said ministers had created a funding shortfall of hundreds of millions of pounds which could bring down many institutions.
Seven are already on a secret ‘at risk register’ compiled by the Higher Education Funding Council for England.

http://www.dailymail.co.uk/news/article-1395031/70bn-student-debt-timebomb-Money-owed-TREBLE-years.html?ito=feeds-newsxml

Same Story

http://www.guardian.co.uk/education/2011/jun/07/student-loan-demand-may-force-cuts

Lokolo

The one thing that confused me entirely in the above article was that the new student loans could stop people getting pensions; which utterly confused the bajeebas out of me. How would the new student loans stop people getting pensions?

melancholly

Lokolo wrote: »

The one thing that confused me entirely in the above article was that the new student loans could stop people getting pensions; which utterly confused the bajeebas out of me. How would the new student loans stop people getting pensions?

good question.... but that was only in the Mail, so it's probably not the best source of information! i'd trust pretty much any paper over them for anything that is fact over speculation (from writers who perhaps aren't the best informed!)

melancholly

http://www.bbc.co.uk/news/education-13676006

so the new uni isn't a new uni and seems have been a little misleading with what it promised about associations with UoL..... all in all, not a great start! wonder if this will all go ahead as planned.....

kayr_2

Lokolo wrote: »

The one thing that confused me entirely in the above article was that the new student loans could stop people getting pensions; which utterly confused the bajeebas out of me. How would the new student loans stop people getting pensions?

Not sure either (of course this is the Daily Mail!) but maybe they meant that the chunk of money from wages which is used for repayments might otherwise have been spent on saving for retirement or on funding a bigger mortgage? I know the loans aren't supposed to affect your ability to get a mortgage but if you have less disposable income then you won't be able to afford as large a monthly repayment so in that way it will affect your mortgage/retirement plans to a certain extent.

setmefree2

Lokolo wrote: »

The one thing that confused me entirely in the above article was that the new student loans could stop people getting pensions; which utterly confused the bajeebas out of me. How would the new student loans stop people getting pensions?

From Which

Moves to encourage greater pension saving

The reasons for inadequate pension saving are varied. Young workers have other demands on their income, such as repaying student loans

http://www.which.co.uk/news/2011/06/pension-report-highlights-contribution-shortfall--255440/

setmefree2

melancholly wrote: »

http://www.bbc.co.uk/news/education-13676006

so the new uni isn't a new uni and seems have been a little misleading with what it promised about associations with UoL..... all in all, not a great start! wonder if this will all go ahead as planned.....

An interesting Article here from the Guardian

http://www.guardian.co.uk/commentisfree/2011/jun/07/give-grayling-new-college-humanities-chance

What the US system shares with the UK is that most of its state-funded universities are going broke, partly because both nations are full of people who fervently believe in the principle of universal education and just as fervently object to paying higher taxes or tuition fees.

I also think this is a worthy point too

Let's be clear about one thing: the people selling out the study of humanities in this country are not AC Grayling and Richard Dawkins, but those on both sides of the political aisle in Whitehall who agreed to publicly fund only the Stem subjects (science, technology, engineering and maths). The government already plans to rely solely on fee-paying students to finance university humanities. At least the NCH believes the study of the humanities is worth £18,000 a year.

2sides2everystory

Lokolo wrote: »

The one thing that confused me entirely in the above article was that the new student loans could stop people getting pensions; which utterly confused the bajeebas out of me. How would the new student loans stop people getting pensions?

Easy - as kayr and setmefree2 imply, two into one won't go. Do you realise that typically (in the private sector at least) employees are asked to contribute 3% minimum of their salaries to participate economically in their employers pension scheme? Due to the usual pressures on disposable income, workers in their early twenties are already put off by the need to contribute a minimum level personally in order to get a matched pension contribution from their employer. As typical pension scheme performance is now abysmal, there is little point investing in such a scheme unless you qualify by your contribution to cause your employer to contribute equally i.e. the main incentive is to get free extra money from the employer if you can afford to contribute yourself and a bit of 'grossing up' of contributions due to tax relief, rather than pension schemes being wonderful investment vehicles (they no longer are otherwise). So whereas people like me years ago got a free university education at a top top university, were offered multiple jobs before we finished even though we were not on track for top degrees, and then were automatically enrolled immediately into well performing non-contributory final salary pension schemes at age 21, the normal situation in 2011 is that many of at age 21 and upwards into their twenties continually put off the idea because they feel they cannot afford to contribute and that it is hardly worth it anyway from what they hear from people like me two or three times their age who have been there and done that. Having to pay a tax of 9% of the excess of £21,000 pa is very similar in size to a typical pension contribution.

Lokolo

setmefree2 wrote: »

From Which



http://www.which.co.uk/news/2011/06/pension-report-highlights-contribution-shortfall--255440/

I find it odd this comment (not yours the bit from the article). Surely if student loan repayments take out from income cause people not to put into a pension, this would apply to previous students as well as 2012+ students? The amount of income taken from them per month will actually be less.

I will be paying back £135 a month, but if I was 2012+ I would be paying back £90 a month.

I also fail to see how the amounts would stop people paying into a pension.

Although I am on a good graduate salary, even with my student loan repayment I am putting in 8% into pension, it's not hindering in anyway or form.

2S2ES, I'll read your epic post in a bit, I've literally just got up and I am extremely hungover.