If you were

the_flying_pig

*edit - damned smartphone - I'd meant to title the thread something like, 'if you were still in any doubt that the odds were stacked against the young', can't change it now*

From next year (according to page 4 of the Sunday times money pull-out) the rate of interest on student loans will be RPI+3%!!!

They'd be vastly better off getting their parents to MEW and paying them a couple of percentage point premium on top.

Graham_Devon

Love how every charge is RPI.

But if this is RPI+3%...ouch!

longtimelurker_2

After we were promised there would be no "real interest" and student loans would just be worth the same in real terms as when they were taken out. I think it's quite clear that promises and pledges made to students are rarely kept.

pqrdef

However, it does seem like a lot of these loans will never be fully repaid.

longtimelurker_2

pqrdef wrote: »

However, it does seem like a lot of these loans will never be fully repaid.

I do wonder, and also how many won't be paid off but the initial sum would have been if it wasn't for the interest. For example - those starting families who have spent several years paying 9% and getting the loan down, take a pay hit to start a family and the loan ends up back to where it was when you graduated as you go back to a job paying over the threshold.

FATBALLZ

pqrdef wrote: »

However, it does seem like a lot of these loans will never be fully repaid.

They aren't meant to be, students loans are simply a mechanism to foist a huge tax hike on the politically powerless, while keeping the boomers and gen x happy.

Can you imagine the reaction if the government announced income tax was going up 9%? the middle aged middle classes would riot. Much better to create a workaround to achieve the same effect but just on those who don't have enough voting power to do anything about it.

ukcarper

FATBALLZ wrote: »

They aren't meant to be, students loans are simply a mechanism to foist a huge tax hike on the politically powerless, while keeping the boomers and gen x happy.

Can you imagine the reaction if the government announced income tax was going up 9%? the middle aged middle classes would riot. Much better to create a workaround to achieve the same effect but just on those who don't have enough voting power to do anything about it.

I believe income tax was over 9% higher in the 70s.

Loughton_Monkey

FATBALLZ wrote: »

........Can you imagine the reaction if the government announced income tax was going up 9%? the middle aged middle classes would riot.....

Ahem!

Middle aged, middle classes do not riot.

They 'have a word' in the right ears and get the thinking reversed.

The smelly students will either turn into (a) useless, unemployed layabouts with their PPE or 'meeja studies' so-called 'degrees', or (b) people with real jobs and will be part of the middle aged middle classes.

Class (a) will not have to pay their loans back. Class (b) will be able to afford it.

oldvicar

'snot fair

Rinoa

the_flying_pig wrote: »

*edit - damned smartphone - I'd meant to title the thread something like, 'if you were still in any doubt that the odds were stacked against the young', can't change it now*

Personally I'd like to see a £1000 tax on every smart phone.

Clearly anybody who buys one has money to burn.

the_flying_pig

Rinoa wrote: »

Personally I'd like to see a £1000 tax on every smart phone.

Clearly anybody who buys one has money to burn.

There are well over ten million of them in the uk. My data usage charge is flat £7 per month.