MSE News: Only one third of pupils understand the new tuition fees system

Taiko

Ok, who had bankers at post 89 in the sweepstake?

I've yet to see an argument against the fees where the banks haven't bring brought into it.

Lokolo

Oldernotwiser wrote: »

I really cannot see how someone earning £30,000 ( as an example) is going to be having difficulty in making repayments of less than £70 pcm. By the time the repayments go to over £100pcm, the graduate would need to be earning over £35,000 and well able to afford this as well as a season ticket. You'd need to be in the higher rate tax bracket before your student loan repayments cost you more than an average pub lunch for 2!

I have already starting budgeting for when I start.

On £33k, my take home after student loan repayments (remember, my threshold is £15k, not the higher £21k! Nor does my threshold rise over time), and after 8% pension contributions will be £1,907

My season ticket (which will be zones 1-2, High Wycombe -> Marylebone will cost £380. Car parking will be £100. So that means after travel my take home will be £1,427.

Oh how on earth can I live off that?

Oldernotwiser

Taiko wrote: »

Ok, who had bankers at post 89 in the sweepstake?

I've yet to see an argument against the fees where the banks haven't bring brought into it.

I was hoping someone was going to invoke Godwin's Law!;)

gadgetmind

wozearly wrote: »

there's still no news on whether early repayments will be allowed (bad move).

Please clarify.

atypical

Lokolo wrote: »

(remember, my threshold is £15k, not the higher £21k! Nor does my threshold rise over time)

One of the concessions during the 'wrangling period' was that students on the post-1998 (and obviously pre-2012) system would have their income threshold increase by inflation from April 2012.

The only place I can find that confirmed (haven't looked very hard though) is here:
http://webarchive.nationalarchives.gov.uk/+/http://www.bis.gov.uk/policies/higher-education/students/student-finance/myth-buster

For some reason it is archived! As far as I know it's still the case though.

wozearly

gadgetmind wrote: »

Please clarify.

Unless I missed it (and Martin's FAQ from 14th June still has it as under debate - point 15), the government hasn't confirmed;

a) whether overpayments will be allowed
b) what, if any, penalty might apply for paying off the loan early


Naturally, if higher earners are able to make overpayments against the loan it would be possible to pay back less overall by making the interest payments smaller.

This is great at an individual level, but not if the intention behind the system was to ensure higher earners pay substantially more, so that they subsidise lower earners directly.

I don't know if this is the explicit idea, but if it was then allowing overpayments wrecks the concept, because you give individuals the chance to reduce their overall contribution by overpaying - and higher earners are more likely to have the spare money and clear incentive to do this.

It wouldn't surprise me if this is one of the reasons that there has been no clear answer...

2sides2everystory

Taiko wrote:

Ok, who had bankers at post 89 in the sweepstake?

I've yet to see an argument against the fees where the banks haven't bring brought into it.

Do you really think that Lehman collapsed by accident, that the resulting domino effect was an Act of God, and that the sell-offs and bail-outs were a surprise to the banks that fared best out of it?

Ever played chess?

Taiko

And how exactly does that relate to the issue of tuition fees...

melancholly

Lokolo wrote: »

My season ticket (which will be zones 1-2, High Wycombe -> Marylebone will cost £380. Car parking will be £100. So that means after travel my take home will be £1,427.

Oh how on earth can I live off that?

so i'm assuming the last statement was a joke, but in terms of travel, does your new company offer any scheme to loan you the money for an annual travelcard? lots do and the annual versus monthly cost could mean a big saving (although my understanding is that only bus season tickets can count for salary sacrifice, but that might be worth checking too). might help a bit.

don't envy that commute long term though.... it's long!

gadgetmind

wozearly wrote: »

Unless I missed it (and Martin's FAQ from 14th June still has it as under debate - point 15), the government hasn't confirmed;

a) whether overpayments will be allowed

Yes, that's how I see it.

Naturally, if higher earners are able to make overpayments against the loan it would be possible to pay back less overall by making the interest payments smaller.

This is great at an individual level, but not if the intention behind the system was to ensure higher earners pay substantially more, so that they subsidise lower earners directly.

But isn't the whole MSE spirit about individuals taking control of their spending, minimising unnecessary expense, and striving to be debt free? And this isn't just a "higher earner" thing, it applies to anyone who's prepared to dig a bit deeper, forgo a few luxuries, and so reduce their debt burden.