2012 students

Lokolo

PaulW1965 wrote: »

Show me a savings account paying RPI plus 3.5% tax free please.:)

1. It is not RPI + 3.5%. It is RPI + 3%.

2. I quite clearly said, over £41k it is a bad deal, which is the only point where interest is charged RPI + 3%. I also said, that profits can be made up to a certain point, this certain point would depend on the person's income and the Index Linked Certs available.

3. In the future, try reading my posts and understand what I am saying instead of making comments like that.

Oldernotwiser

MrsAverage wrote: »

thank you.
Surely the 'bad debt' aspect is a disincentive to wanting to earn money and build a good career?
Would it be better if we took out a loan so we could pay 'shop around' and keep control of what and when it's paid off?
I am afraid a future government (whatever flavour) might change the rules/rates once our kids are tied into the system and it could affect them for much longer than the 30 years

It would be the student that applies for and receives a loan and not the parents. It would be a very short sighted philosophy to apply only to cheaper universities, rather than applied to the best that your child can aspire to.

The most important aspect of student loans compared with commercial loans is that nothing needs to be repaid until (and if) the borrower earns over the threshold meaning that nothing will need to be paid in the case of redundancy, illness, domestic responsibilities etc. There will never be a point where money is demanded from someone without the means of paying.

PaulW1965

Lokolo wrote: »

1. It is not RPI + 3.5%. It is RPI + 3%.

To make it worth my while I'd need at need to make at least half a percent profit surely?

So I repeat - where is the savings account that pays RPI + 3.5% tax free?

Lead me to it......:)

Ahhh, thought not, doesn't exist does it????:D

PaulW1965

Lokolo wrote: »

In the future, try reading my posts and understand what I am saying instead of making comments like that.

Chill dear

Lokolo

PaulW1965 wrote: »

To make it worth my while I'd need at need to make at least half a percent profit surely?

So I repeat - where is the savings account that pays RPI + 3.5% tax free?

Lead me to it......:)

Ahhh, thought not, doesn't exist does it????:D

Are you even reading my points??

I said when over 41k it does not make it worthwhile. What more do you want me to say? I've said it three times in just this thread.

You are only charged RPI + 3% when earning over £41k. WHICH IS WHY I HAVE SAID IT IS NOT WORTH IT AT THIS POINT as you can't currently make profit on this.

You are not charged anything above RPI whilst studying and £21k and under. You can make profit on this through index link certs.

You can still make profit over £21k but as your earnings increase the chances of making profit become slimmer.

atypical

Lokolo wrote: »

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/DG_194804

Quite near the bottom of the page.

I hadn't realised that the 'RPI + x%' changes in tiers as salary increases past £21k. I'm suprised they kept interest at RPI + 3% while you're studying.

Lokolo

atypical wrote: »

I hadn't realised that the 'RPI + x%' changes in tiers as salary increases past £21k. I'm suprised they kept interest at RPI + 3% while you're studying.

Assuming linear, the charge on interest will be above RPI by:

<=£21k 0.00%
£22,000.00 0.15%
£23,000.00 0.30%
£24,000.00 0.45%
£25,000.00 0.60%
£26,000.00 0.75%
£27,000.00 0.90%
£28,000.00 1.05%
£29,000.00 1.20%
£30,000.00 1.35%
£31,000.00 1.50%
£32,000.00 1.65%
£33,000.00 1.80%
£34,000.00 1.95%
£35,000.00 2.10%
£36,000.00 2.25%
£37,000.00 2.40%
£38,000.00 2.55%
£39,000.00 2.70%
£40,000.00 2.85%
£41,000.00 3.00%

So at some point it wouldn't become worthwhile, but at which point we won't know. Will just depend on what things are like at that point.

NRTurner

There's a nice PDF available from Times Higher Education that gives an overview; unfortunately I can't link to it directly as I'm a new user but it's on their web site.

melancholly

NRTurner wrote: »

There's a nice PDF available from Times Higher Education that gives an overview; unfortunately I can't link to it directly as I'm a new user but it's on their web site.

http://www.timeshighereducation.co.uk/Journals/THE/THE/THE/attachments/Tuition%20fees%20guide.pdf

(although i'd expect details to shift in the next few months as they try to salvage the situation - with almost every uni wanting £8K+, there may well be a rethink of the system, or at least parts of it.)