How do we know student loans earning threshold will always be index-linked?

Taiko

I would not recommend any of them, from a purely financial viewpoint. Student loan is always the best option.

MJM10

If every student takes a year out next year the system will have to be reviewed. On a more serious note, the UK is going to have to write off the majority of these loans in 25 or 30 years time. Most Graduates will do little more than pay the interest. I suggest that this is passing the cost of education to future generations. Education should be funded properly as it was for the people who are now in power.

Oldernotwiser

MJM10 wrote: »

Education should be funded properly as it was for the people who are now in power.

In that case we should reduce university places by 75% as was the case at that time.

If we did that, I would agree with you.

silvercar

MJM10 wrote: »

If every student takes a year out next year the system will have to be reviewed. On a more serious note, the UK is going to have to write off the majority of these loans in 25 or 30 years time. Most Graduates will do little more than pay the interest. I suggest that this is passing the cost of education to future generations. Education should be funded properly as it was for the people who are now in power.

Unless the government changes the rules and says the country can't afford to write them off!

PaulW1965

silvercar wrote: »

Unless the government changes the rules and says the country can't afford to write them off!

and then does what?

PaulW1965

MJM10 wrote: »

If every student takes a year out next year the system will have to be reviewed. On a more serious note, the UK is going to have to write off the majority of these loans in 25 or 30 years time. Most Graduates will do little more than pay the interest. I suggest that this is passing the cost of education to future generations. Education should be funded properly as it was for the people who are now in power.

Intergenerational theft. Kicking the can down the road. Call it what you like. But if students do not have to pay back these loans somebody DOES and ultimately it will be the tax payers.

How long before this bubble gets too big I wonder ? Why has the media not picked up this HUGE WHALE of a fish and slapped the government about with it ?


This only goes to demonstrate how entrenched failed policies are in the UK - this kind of "economics" should be avoided like the plague.

I_Wanna_Retire_Someday

PaulW1965 wrote: »

This only goes to demonstrate how entrenched failed policies are in the UK - this kind of "economics" should be avoided like the plague.

People are up to their eyeballs in debt in this coutry, as are our Governments and banks. The only people left that can take on debt are those who haven't even reached majority yet.

Makes me sick!

silvercar

PaulW1965 wrote: »

and then does what?

Continues taking 9% of income over £21000 indefinitely. Currently after 30 years the debt would be written off, so at the age of 51 or 52 you would find you no longer have to pay student loan repayments. How easy would it be to announce in 20 years time, that the country can't afford it and payments will continue until retirement?

PaulW1965

silvercar wrote: »

Continues taking 9% of income over £21000 indefinitely. Currently after 30 years the debt would be written off, so at the age of 51 or 52 you would find you no longer have to pay student loan repayments. How easy would it be to announce in 20 years time, that the country can't afford it and payments will continue until retirement?

I suppose it's possible. What other choices would a government have if it didn't have the money to write the loans off? Raise VAT, general income tax, reduce spending? Voting for ex graduates to keep on paying for their student loans would probably be the most politically expedient, since people will usually vote for others to pay taxes.

When do the first student loans start getting wriiten off?

Oldernotwiser

PaulW1965 wrote: »

When do the first student loans start getting wriiten off?

Not sure what you mean by the "first student loans" but my pre 1998 loans were written off last year.