Student loan or graduate tax?

Tixy

I always think of NI as a direct tax, I would never think of a student loan as a tax.

PasturesNew

Give up your job and work in a chip shop then ... that'll show 'em.

Moneybot

Tixy wrote: »

Whilst a student loan is sometimes likened to a tax it is not one.

If the argument is that 50% tax would drive people away from the UK then with a student loan even if people are working abroad they still have to pay their student loan back.
So the incentive is less for a 40% tax payer and 9% student loan payment to move out of the UK than for someone who is taxed at 50%.

Actually if you are working abroad and are not resident in the uk for tax you don't have to pay your student loan back. The student loan ia also written off after a number of years so in fact there is more of an incentive to work abroad if you have a student loan.

CLAPTON

Moneybot wrote: »

Actually if you are working abroad and are not resident in the uk for tax you don't have to pay your student loan back. The student loan ia also written off after a number of years so in fact there is more of an incentive to work abroad if you have a student loan.

this is incorrect

opinions4u

My answer would be neither.

There should be a significant reduction in the number of universities and courses. The emphasis should be very much on the quality of education, not the quantity.

With fewer people going to university, the state should pick up 100% of the cost (regardless of parental income) as a genuine investment in the future of the country.

DreamerV

The student loan does need to be paid back if you move abroad!

Personally I have no problems paying tax (20% at the moment), 40% in approximately 2 years time I reckon. I didn't go through the state school system but when I've been ill, the NHS have been there for me. When I had a stalker, I was able to access police services easily enough. I think it's fair I paid taxes for that. I just wish the taxes were spent more wisely. I saw a documentary about tax in Norway, and people seemed to be happy to be paying even higher tax, as they saw value for money in it, and had good quality of life. I'd pay an extra 5% for that.

I have no issues with paying 40% tax, and 9% on my student loan. I can't see it as a tax, as it's money I have borrowed, being paid back at a low rate! I personally feel that the loan conditions are very generous

hawk30

I see my student loan as a tax, but I do not have any problem with that. My degree enabled me to get a well paid job that I love and so is money well spent.