You WILL owe money for longer and MAY pay a LOT moreThe flip-side of people repaying less due to the higher £21,000 threshold is that it will take much longer to pay off the loan. And this is compounded by the fact the original debt is bigger and the interest rate higher.
The cost is effectively being spread over a much longer period. It means initially graduates will be able to keep more of their income to spend than now, though later on when they would've paid off the loan under the current system, they'll have less as now they'll still be repaying.
lsur02 wrote: »
Based on my own experience of the Student Loan Scheme, I would advise prospective students to be very careful indeed before signing up. The Scheme has been mis-sold since the outset. It is not clear, for example, how long the loan is meant to cover each year - is it a full calendar year or just 30 weeks of the academic year? How will you pay the rent for the rest of the year, especially with unemployment being so high for everyone, young people included. You will have no rights to any form of social security.
It is a nasty scam and only suitable for a minority of students. Take care before you get caught with lifelong debt!
melancholly wrote: »
but that's half the equation; it's living costs plus fees. as has been already said, one is probably an overestimation and one is a probably an underestimation. making both more accurate won't change the total very much.
Lokolo wrote: »
Because those with higher incomes are more likely to be able to contribute towards the childs educations.
setmefree2 wrote: »
I think it's perfectly reasonable for posters to want to see a worked example of what happens if a student takes both the full tuition and maintenance loans.
I thought you were all for students being informed?
The_Baroness wrote: »
Can someone pls explain why, if it is the student who is taking out the loan, parental income is taken into account when setting the amount of living cost loan they are eligible for?
nickyhellard wrote: »
Lots of questions around marriage/partnership. E.G. If a graduate gets married, works for awhile, pays off some of the loan (perhaps) ,but then gives up work to have a family, what happens to the rest of the loan. Is the working partners salary taken into account when considering if the income is sufficient to qualify for repayment. (years ago both partners income was considered when applying for a mortgage). Are they then liable to pay off that loan as well as perhaps their own loan in the case of two graduates marrying.
Four million customers affected
Up to 1.7% fixed or 0.6% easy access
Flavourly newbies only (norm £70ish)