MSE News: Confusion reigns as student fees fear takes hold

gadgetmind

Oldernotwiser wrote: »

Why are all your salary assumptions so high?

Because we were specifically exploring whether you have to earn "a LOT more" or "right sodding seriously butt load more" to stand any chance of ever paying off the loan.

I also used £24k as that's the lowest offer the company I work for makes to graduate recruits. We don't go as high as £30k, but I'm told that financial establishment and/or those "darn sarf" do.

melancholly

gadgetmind wrote: »

Because we were specifically exploring whether you have to earn "a LOT more" or "right sodding seriously butt load more" to stand any chance of every paying off the loan.

i like your use of technical terms!

SkyeKnight

Lokolo wrote: »

The 99% was more of a pun however, to suggest 40-50% will pay back their loan fully is laughable. You need to be earning quite a bit to start with and have large increases in salary (for examples, in gadgets you need to have started on £30k+ and have greater than 5%+ increases in salary). To say that 40-50% of gradutes have this is very much a false assumption. Can I ask where you got this information?

The 2016 date isn't that too far away, so £21k won't be woth considerably less at all. Less? Yes. Considerably less? No.

I think I read that figure in the Guardian, but it comes from a government paper:
www .publications.parliament.uk/pa/cm201011/cmselect/cmbis/writev/885/m16.htm
Living in the South East, it doesn't look wildly optimistic to say 40% will pay back their loans. Its certainly normal as a graduate to be earning in the £40k to £50k range which would probably see you pay it all back (plus maximum interest!)

Lokolo

SkyeKnight wrote: »

I think I read that figure in the Guardian, but it comes from a government paper:
www .publications.parliament.uk/pa/cm201011/cmselect/cmbis/writev/885/m16.htm
Living in the South East, it doesn't look wildly optimistic to say 40% will pay back their loans. Its certainly normal as a graduate to be earning in the £40k to £50k range which would probably see you pay it all back (plus maximum interest!)

Straight from university? I can assure you, thats not normal. A graduate would expect to earn £15-25k outside London, and £25-35k inside London to start off with.

2sides2everystory

Lokolo wrote: »

Straight from university? I can assure you, thats not normal. A graduate would expect to earn £15-25k outside London, and £25-35k inside London to start off with.

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 (and can be found both ways against a lower than expected middle). At the £15K mark you may still find numbers of presentable graduates behind the counters of numerous banks in London. They may struggle to break out to get given business cards which tell them they have made it to the next level, but that is barely £25K in London either.

On the other hand, a few rocket scientists might go straight in at £35K, but only a few. The rest of us, once out there, will be going down sooner rather than later after launch into the jobs market and a life in our type of society and had better watch the whole movie as soon as we can

gadgetmind

http://www.thecompleteuniversityguide.co.uk/careers/what-do-graduates-earn/

As with all of these things, averages can be deceptive. There are universities and universities, and degrees and degrees. Those with a good degree from a good uni will be able to command 25% more very easily for many roles, and even 50% in many cases.

Lokolo

gadgetmind wrote: »

http://www.thecompleteuniversityguide.co.uk/careers/what-do-graduates-earn/

As with all of these things, averages can be deceptive. There are universities and universities, and degrees and degrees. Those with a good degree from a good uni will be able to command 25% more very easily for many roles, and even 50% in many cases.

Oh quite, but the person above my SkyeKnight says you can be a graduate on £40k-£50k in the South East, I don't even think the most optimistic of parents think their child can come out of university with that as a realistic expectation!

Oldernotwiser

Lokolo wrote: »

Oh quite, but the person above my SkyeKnight says you can be a graduate on £40k-£50k in the South East, I don't even think the most optimistic of parents think their child can come out of university with that as a realistic expectation!

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

2sides2everystory

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?

Lokolo

Oldernotwiser wrote: »

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

Indeed

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 think you and ONW both agree on something, shock horror.

But yes, the thing is Skye is calculating her analysis based on someone earning this amount, where it would take numerous years to reach this point, and the payback baseline would have changed from £21k by then.