£100,000 of student loan debt. Young crippled by debt burden

grizzly1911

paulmapp8306 wrote: »

I see absolutely nothing wrong with that system - it fills all NEEDS (rather than wants) without class descrimination (which didnt happen pre fees) - yet reduces the overall government funding of higher education, currently given to students who frankly only go to Uni because their friends are, or theres no (apparent) jobs, or just because - without giving any thought to what they want to do with their lives or what the need in the eway of education to make those plans happen.

Not to mention the number of EU students who we have to provide free courses to. It is no doubt easier to study in English rather than a UK student trying to Maths in German.

Idiophreak

paulmapp8306 wrote: »

there is no way uni can be funded without fees

That's weird...most of the rest of Europe manages. There's a simple way to fund university without fees, even for a lot of students - the government recognises the wider benefits to society of a more educated population and pays for people to go. Done.

paulmapp8306 wrote: »

3. Other courses will be offered to those who wish to gain a degrees, but are to be paid for at FULL cost (which will be much higher than the £8k per term currently in place).

Will they? £8k? Seriously?

My wife had 2 hours per week in her final year. That's 60 hours of contact time per year, with probably another 20 of tutorials. So that's £100/hour she'd be paying at £8k. 150 students on the course - so each lecture makes the uni £15k. Not bad for an hour's work.

Of course, the real cost of those lectures should be, maybe, £1k to the student...Then what's the other 7k to be spent on?

It's a really worrying model, to be honest.

The natural extension is "well, I don't want to pay for a library, I'll buy my own books...I don't want a computing lab, I've got my own computers...I don't want to pay for research, I just want to pay for my own studies"...all of these things become optional extras, like purchasing a RyanAir flight...and you'll end up with something that....isn't a university.

MrShazzyMan

CLAPTON wrote: »

It used to be the case that 40,492 divided by 30 (years) was about 1,350.
I'm not sure why repaying such a sum per year is considered crazy. (and yes I know interest will be added which will add a little to the total)

Yes indeed you make it sound as if it's nothing but think about it what about once income tax, council tax and whatever other tax is taken off then the student loan is taken off what am I really left with? Also consider the fact that there isn't many decent jobs left nowadays.

CLAPTON

MrShazzyMan wrote: »

Yes indeed you make it sound as if it's nothing but think about it what about once income tax, council tax and whatever other tax is taken off then the student loan is taken off what am I really left with? Also consider the fact that there isn't many decent jobs left nowadays.

You aren't really on topic with the subthread but

you don't pay anything at all unless your earn more than 21,000 and then only 9% of the amount over that.

And of course that's a lot less that graduates have been paying since 1998

but you know that already

shaggydoo

IveSeenTheLight wrote: »

Erm, am I missing something?

.

Yes under the old system (pre 2012) students started repaying loans at £15,795 at 9%.

IveSeenTheLight

shaggydoo wrote: »

Yes under the old system (pre 2012) students started repaying loans at £15,795 at 9%.

I'm sure the discussion was on student debs going forward..
Even then, adding in £6k at 9% will not make the net tax of 40%+ as stated by the previous poster.

Nice name by the way, are you a product of Scooby and Shaggy being bored one evening?

CLAPTON

IveSeenTheLight wrote: »

I'm sure the discussion was on student debs going forward..
Even then, adding in £6k at 9% will not make the net tax of 40%+ as stated by the previous poster.

Nice name by the way, are you a product of Scooby and Shaggy being bored one evening?

marginal rate of deduction once over the SLC repay allowance

20% tax
12% NI
9% SLC

i.e. 41% marginal rate of deduction


or if a 40% tax payer (over 42,475pa)
40% tax
2% NI
9% slc

i.e. 51% marginal rate of deduction

alinwales

i pay around £100 a month to repay my loan. I'll be happy when it stops, but if I had to pay that for the rest of my career (if i was in the new system at the time), well so be it. I can support my wife and kids now, do people think this 'burden' will affect them that much in the future? It's just an additional tax for those who earn more, which is what the system is all about surely - I presume people can't hide earnings overseas to avoid paying the loan back if daddy got them a super paid job?

I still think there will be a funding black hole in a few years time when the government aren't getting back from ex-student anywhere near what they are paying to fund the universities now.
But that's for my kids to worry about in 15 years time!

N1AK

ruggedtoast wrote: »

Graduates now face a lifetime of loan penury and insecure renting ,

Young people now face a virtually insurmountable debt burden gain a degree

I am strongly against the changes to the way university education is funded for many of the reasons quoted in the article; however it still frustrates me to see this kind of hyperbole.

Anyone earning under £21k won't pay anything. Someone earning £30k will pay back less than £70pm. The current system will never 'burden' anyone and it's irrelevant when borrowing (bar a little difference in affordability tests).

The reason I think the hyperbole is so bad is that it may well encourage people who would benefit considerably from going to Uni, even with the new loans, not to.

IveSeenTheLight

CLAPTON wrote: »

marginal rate of deduction once over the SLC repay allowance

20% tax
12% NI
9% SLC

i.e. 41% marginal rate of deduction


or if a 40% tax payer (over 42,475pa)
40% tax
2% NI
9% slc

i.e. 51% marginal rate of deduction

ok, get that now, but from the original poster point, this is only 32% and only applies to earnings above the threshhold.
The SL is not applicable till after £21,000 is earned

[quoteOriginally Posted by posh*spice]
Graduate starting degree before autumn 2012 earning £15,795+ pays 20% (income tax) 13% (NI) 9% SL = 42% (ish)

42% marginal tax on £15,796 !!!!!!!!!!
[/quote]