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MSE News: Confusion reigns as student fees fear takes hold
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setmefree2 wrote: »@gadgetmind
Given that SLs attract interest at RPI+3% from the getgo would high inflation expectations in the near-term alter your position on paying fees upfront?
Yes, I'd be more inclined to take the risk and avoid the debt in the first place with high inflation. With lower inflation, it would be better to take the debt and then clear at 3/5 years. Of course, they will probably block such large repayments as they *want* people to be saddled with these repayments for most of their working lives.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
setmefree2 wrote: »People should also try the BBC calculator too. I've found that you get a different outcome from MSE. The MSE calculator generally shows you pay back less.
For example using the MSE calculator a student borrowing £43,500 tuition and maintenance starting on £23500 pays back £34,750 under MSE standard assumptions. With the BBC calculator the figure for a teacher borrowing £43500 pays back £58,783.
Big difference.
http://www.bbc.co.uk/news/education-14785676#student_finance_form
I've just had a play with the calculator and it's very odd!
For some reason, the more you borrow, the more your salary will be... whats up with that? Since when would the amount you borrow correlate to the amount your salary is?Oldernotwiser wrote: »For someone to be paying back £7,000 pa they would have to be earning nearly £100k and someone repaying £10,500 would be earning nearly £138,000 on today's figures.
Without taking inflation into account, I really can't see the point in coming up with these sorts of figures unless you want to frighten people away.
Although I can see what you mean, setmefree actually said 2x teachers, so £3.5k each.0 -
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Oldernotwiser wrote: »I really can't see the point in coming up with these sorts of figures unless you want to frighten people away.
I'm not tryng to frighten anyone. I am, however, a realist and I like to go into situations with my eyes wide open. I prefer not to bury my head in the sand and just hope for the best, so yes I'm happy to discuss the BBC figures no matter how scary they might seem.... dumb optimism has little to recommend it imao.0 -
gadgetmind wrote: »Yes, I'd be more inclined to take the risk and avoid the debt in the first place with high inflation. With lower inflation, it would be better to take the debt and then clear at 3/5 years. Of course, they will probably block such large repayments as they *want* people to be saddled with these repayments for most of their working lives.
Sounds like a plan. I think the setmefree2s will do the same, especally if the BOE base rate stays at 0.5%
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setmefree2 wrote: »Sounds like a plan. I think the setmefree2s will do the same, especally if the BOE base rate stays at 0.5%
I know you'll do your homework and modelling, so good luck.
We've got it a bit easier as the stock market has been *far* kinder to us than that harsh mistress usually is, so we're in "juggling" rather than "finding" territory, but it's still sodding difficult to know what's the right thing to do.
No decision yet as I don't yet have all the required information.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »I know you'll do your homework and modelling, so good luck.
We've got it a bit easier as the stock market has been *far* kinder to us than that harsh mistress usually is, so we're in "juggling" rather than "finding" territory, but it's still sodding difficult to know what's the right thing to do.
No decision yet as I don't yet have all the required information.
Yup spreadsheets galore. Trouble is you actually need to be a gypsy to work out the best thing to do
We are lucky enough to have the money to pay upfront too but plenty of things to ponder on yet (oh joy!)....
I don't suppose you have found any other forums discussing this have you?0 -
setmefree2 wrote: »Yup spreadsheets galore. Trouble is you actually need to be a gypsy to work out the best thing to do
Yup, lots of uncertain assumptions, all of which make a huge difference.I don't suppose you have found any other forums discussing this have you?
A few, but more heat than light, TBH.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »A few, but more heat than light, TBH.
My experience too. Thanks anyways.0
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