MSE News: Confusion reigns as student fees fear takes hold

Taiko

!!!!!!! hell that's twice in a few days. Isn't this one of the signs of the apocalypse?

hermante

gadgetmind have you taken into account the NHS bursary your daughter may receive towards the end of her course? Also a starting salary of £24K rising to £30K the next year is not unrealistic for a doctor graduating in 2017 (even without banding).

gadgetmind

hermante wrote: »

gadgetmind have you taken into account the NHS bursary your daughter may receive towards the end of her course?

Yes, that's built into the final year.

Also a starting salary of £24K rising to £30K the next year is not unrealistic for a doctor graduating in 2017 (even without banding).

I'd put in £24k but had guessed at the escalator afterwards. Thanks.

Her best option would seem to be to take the loan in case anything goes wrong (it is a demanding course) but to then pay it off sharpish if/when it all looks to be going to plan.

We/she do have something put aside, but it's a juggle between current needs, house deposit needs, and later needs.

lynzpower

Sorry, but that's just a daft example. Who on earth would refuse a pay rise of £5k (approx £280 pcm net) because they'd have to pay (less than) £30 pcm back?

That just doesn't make sense.

ETA

Sorry Lokolo, just got to your post!

Sorry, yes I was doing an essay and a bit half doing things

The ultimate problem is that 30 quid a month is very low outrageously low., the interest alone is over £6 per day. I make it 6*362 / 12

How on earth is anyone ever going to pay it off if the monthly interest alone is 182.50 per month.

Lokolo

lynzpower wrote: »

Sorry, yes I was doing an essay and a bit half doing things

The ultimate problem is that 30 quid a month is very low outrageously low., the interest alone is over £6 per day. I make it 6*362 / 12

How on earth is anyone ever going to pay it off if the monthly interest alone is 182.50 per month.

They won't!

And it doesn't matter because after 30 years, it gets wiped.

It's not like a commercial debt whereby you pay back what you owe, which is why I keep saying "Don't look at the headline debt". The fact is, someone could earn £20k after going to university for 30 years, owe £200k, and then it gets wiped. Not having paid back a single penny.

lynzpower

Lokolo wrote: »

They won't!

And it doesn't matter because after 30 years, it gets wiped.

It's not like a commercial debt whereby you pay back what you owe, which is why I keep saying "Don't look at the headline debt". The fact is, someone could earn £20k after going to university for 30 years, owe £200k, and then it gets wiped. Not having paid back a single penny.

I do understand that bit

Another problem is, what is the limits of this level of debt? How easily will they be able to get a mortgage? What about a loan for a car? Would it restrict raising money to run a business?

After all, a few lenders took into account the 10,000 outstanding student loan I had, restricting what they would lend me 30k less (3x my exposure) and that was in the giveaway years.

Lokolo

lynzpower wrote: »

I do understand that bit

Another problem is, what is the limits of this level of debt? How easily will they be able to get a mortgage? What about a loan for a car? Would it restrict raising money to run a business?

After all, a few lenders took into account the 10,000 outstanding student loan I had, restricting what they would lend me 30k less (3x my exposure)

No idea about the mortgage or loan. The only provider I know of that has checked about student loan is the Post Office (not sure if one of those was one of your lenders?).

I am very surprised they restricted it by that much though. No-one has said much on the House Buying section.

setmefree2

2sides2everystory wrote: »

I think this goes to show that graduate salary expectations are like buy and sell prices in financial markets - all froth and little substance. The real deal is much more murky

The Graduate Market in 2011
Summary
• Starting salaries at the UK’s leading graduate employers in 2011 are expected to remain unchanged from 2010 levels – a median of £29,000. Salaries increased by 7.4% in 2010 and 5.9% in 2009.
• A quarter of top graduate programmes will pay new recruits more than £30,000 when they start work and seven organisations are offering at least £40,000 to this year’s graduates.
• The most generous salaries are those on offer from investment banks (average of £42,000), law firms (average of £38,000) and oil & energy companies (average of £32,000).
• Public sector employers (average of £22,200), retailers (average of £24,000) and engineering & industrial companies (average of £24,500) have the lowest graduate pay rates for 2011

http://www.highfliers.co.uk/download/GMReport11.pdf

setmefree2

2sides2everystory wrote: »

I don't think SkyeNight meant £40K-£50K as a starting salary - for me that was kind of peak of trajectory stuff ten years ago - but what do I know or represent?

I read it the same way.

setmefree2

Oldernotwiser wrote: »

And it would still be a pretty optimistic forecast for someone settled in a career.

Not really.....