Student Loan 2015 Discussion

setmefree2

Lokolo wrote: »

Hell I'm not saying it's impossible, but I don't think it's anywhere near average, more of the top end of the spectrum.

The £50k starting salary is exceptional (if not impossible), so if a student is that exceptional what are the chances that they will be earning just £87k 30 years later (without inflation)...

Oldernotwiser

Could we leave all this high finance and get back to the real world?

motivatedmonkey

Originally Posted by Oldernotwiser
There have been several types of student loans in the past and changes have never been applied retrospectively. I don't think that any government would risk doing this as it would affect many graduates who'd reached positions of influence and power.

kayr wrote: »

I would broadly agree with this and certainly hope it is the case. However I have to say that I don't trust many in the present government and the way the country is going, it wouldn't surprise me if the goalposts were moved. The loan system hasn't been going that long really so although there have never been retrospective changes there are plenty of years ahead of us when this could change. I really hope you are right though!

I share your concerns. I have previously posted some of this but it seems relevant as a reply to this post.

In the current "Student Loans - A Guide to Terms and Conditions 2011/2012" (on the Direct.Gov website) it states:

3. Your responsibilities:
You must agree to repay your loan in line with the regulations that apply at the time the repayments are due and as they are amended. The regulations may be replaced by later regulations.

I called Student Loans helpline in May about the section that states "regulations that apply at the time the repayments are due" (not necessarily when loan taken out) . They said that regulations for any loan whether repayment had been started or not could be subject to change.

This is what is currently being signed up to.

TheBees

Thank you everyone for your comments in reply to my post yesterday, some people agreeing with my way of thinking about not wanting my son to be burdened with debt and other people saying it's not as bad as it sounds! As somebody said, we all have different attitudes to money and debts.
Well we are going to our first uni open day tomorrow and will be listening to a talk about student finance so will hopefully learn a bit more tomorrow! :rotfl:
I can just about get my head around the fact that he may have to take out the loan but will not be happy if they're not allowed to repay it early. (I know that hasn't been decided for definite yet)The politicians seem to want to make this a fair system for rich and poor. Well I'm sorry, but life isn't always fair and there will always be winners and losers.
:eek:

melancholly

kayr wrote: »

I actually don't think it is particularly "generous", it's just part of being a parent. You choose to have children so should take on the responsibility of educating and supporting them financially, as much as possible, until they can earn their own living. I happen to think that point is reached when they graduate from university, but that's just my point of view and I know lots of people would disagree with that! However I do agree that it is crucial to make sure they understand how the financial system works and that they are responsible for their finances; no point giving them money without the financial education.

i still think it is very generous - particularly since the news of massive fee hikes has given parents very little time to prepare. this is one of my pet hates about the changes tbh - fine in the US people know how much it costs and start college funds at birth, but 2 years notice doesn't really allow that for parents of current teenagers! parents having children 17 years ago couldn't have expected to need an extra £45K or so up their sleeves for university.

i also know how many parents would love to help and maybe could help partially, but just can't conjure living expenses and fees up at such short notice.... i think supporting children through uni has become an entirely different entity now that the costs are so much greater.

although this will probably the most financially aware cohort of students ever - no-one can have missed seeing something about the fees system! (please let there me more upsides than that though )

kayr_2

motivatedmonkey wrote: »

Originally Posted by Oldernotwiser
There have been several types of student loans in the past and changes have never been applied retrospectively. I don't think that any government would risk doing this as it would affect many graduates who'd reached positions of influence and power.





I share your concerns. I have previously posted some of this but it seems relevant as a reply to this post.

In the current "Student Loans - A Guide to Terms and Conditions 2011/2012" (on the Direct.Gov website) it states:

3. Your responsibilities:
You must agree to repay your loan in line with the regulations that apply at the time the repayments are due and as they are amended. The regulations may be replaced by later regulations.

I called Student Loans helpline in May about the section that states "regulations that apply at the time the repayments are due" (not necessarily when loan taken out) . They said that regulations for any loan whether repayment had been started or not could be subject to change.

This is what is currently being signed up to.

Yes, that's why I have concerns. When I looked through the document my son was signing up to recently with him, that bit did worry me but, as ONW said, I hope it would be too politically difficult to do anything too drastic.

kayr_2

melancholly wrote: »

i still think it is very generous - particularly since the news of massive fee hikes has given parents very little time to prepare. this is one of my pet hates about the changes tbh - fine in the US people know how much it costs and start college funds at birth, but 2 years notice doesn't really allow that for parents of current teenagers! parents having children 17 years ago couldn't have expected to need an extra £45K or so up their sleeves for university.

i also know how many parents would love to help and maybe could help partially, but just can't conjure living expenses and fees up at such short notice.... i think supporting children through uni has become an entirely different entity now that the costs are so much greater.

although this will probably the most financially aware cohort of students ever - no-one can have missed seeing something about the fees system! (please let there me more upsides than that though )

I quite agree with you except that I don't think I am being generous as I started preparing for this 15 years ago when I became concerned about how university education was going - thought it would get expensive, but not quite this expensive! The new system did come a bit suddenly. I agree that 2 years notice is not enough time to make financial preparations for most people.

setmefree2

kayr wrote: »

Yes, that's why I have concerns. When I looked through the document my son was signing up to recently with him, that bit did worry me but, as ONW said, I hope it would be too politically difficult to do anything too drastic.

It worries me too but another way:D. What if you pay up front and then, say, a Labour government comes in and changes the T & Cs so they are more favourable and then you wish you'd taken the loan!

Has anyone got a crystal ball?

kayr_2

setmefree2 wrote: »

It worries me too but another way:D. What if you pay up front and then, say, a Labour government comes in and changes the T & Cs so they are more favourable and then you wish you'd taken the loan!

Has anyone got a crystal ball?

Hadn't thought of that one but I suspect they wouldn't be able to afford it. Good point though! However I've got 2 years to work out what to do, hopefully with more details to go on by then.

The_Baroness

setmefree2 wrote: »

It worries me too but another way:D. What if you pay up front and then, say, a Labour government comes in and changes the T & Cs so they are more favourable and then you wish you'd taken the loan!

Has anyone got a crystal ball?

I don't think we need to worry about that. Whatever they say when they are in Opposition, has any Party, once they back in power, removed or amended any taxes/fees which a previous government may has introduced, which would result in less money coming into the coffers? Once any fees/taxes are introduced, the only way they change is by going up.