Is money and a student loan really a big deal?

ch3101

CLAPTON wrote: »

why does the debt hang over their head as they don't have to pay a penny until they earn over 21k ish?

More that it'll be there sapping their income for a long time. But not specifically student loans, if there is any other kind of debt, overdrafts, cards etc, then it is there afterwards too and will need immediate repaying.

But then again, if they're on say 30k and it isn't increasing, repaying what 9% above 21k? It takes ages to pay off and unless you're in a job that would be impossible without uni, was it worth the debt...?

CLAPTON

ch3101 wrote: »

More that it'll be there sapping their income for a long time. But not specifically student loans, if there is any other kind of debt, overdrafts, cards etc, then it is there afterwards too and will need immediate repaying.

But then again, if they're on say 30k and it isn't increasing, repaying what 9% above 21k? It takes ages to pay off and unless you're in a job that would be impossible without uni, was it worth the debt...?

normal debts have to be paid off

student loans have a repayment commitment at 9% of the earning over about 21k (index linked)
why does it matter how long it takes to pay off?

if the uni qualification is worthless then best not to do it in the first place irrespective of the loan.

laurel7172

cleverinvestor wrote: »

Thats exactly it. The food and shelter has value, the exchange of currency for it has no value.

So if you can get Shelter and Food without the exchange of currency, but say, for selling a skill, or helping someone out the world would be a better place.

I work full time but dont have much money left at the end of the month. It would be easier for all involved if my work place just let me sleep in the office and fed me instead of getting the banks involved.

Tied cottages and paid in vouchers for the overpriced company store :eek:? Slavery in all but name, you mean?

bigadaj

laurel7172 wrote: »

Tied cottages and paid in vouchers for the overpriced company store :eek:? Slavery in all but name, you mean?

Well most people manage to spend so much on crap, financed through loans, debt and mortgages that they effectively volunteer for self imposed slavery, unless they default with the consequences thereof.

ReadingTim

The traditional view is that degree = better job = more money therefore student loans etc aren't debt so much as an investment in your future, and will reap you far greater rewards than the initial outlay.

While this is probably true for some students and universities, the simple fact is that there are too many people who are not good enough going to too many universities that are not good enough, devaluing higher education experience for everyone. Frankly, there are some degrees from some places that aren't worth the paper they're printed on.

However, the poor sods who are on posession of some mickey mouse degree from Scumbag Poly are in debt to the tune of tens of thousand pounds and under the impression the doors to wealth and prosperity are going to fly open, which simply doesn't happen. Indebted and with unrealistic employment expectations, they end up in a series of dead end jobs, whereas they should have learned to be a plumber and be raking it in.

Furthermore, the unfortunates who did leave school at 18 now find the sort of jobs they used to go into crammed full of graduates, or, in some crazy sort of grade inflation, now requires a degree to apply whereas it only took A-Levels years ago.

The post 1992 university expansion together with the labour mantra of 'education, education, education', student loans etc have conned everyone, not that the coalition are doing much to change that, other than trying to price lower incomes out of education altogether - maybe wealth, rather than intellect is the new entry criteria?

bigadaj

The expansion of higher education has actually been regressive, certainly in terms of social equality.

Whilst many degrees might be of poor quality and nominally of little value, if you come from the right background then you can still progress, if you've struggled to get a crap degree and come from a council estate then you are unlikely to benefit.

Paul_the_Painter

I now work in recruitment, and you would be amazed at the number of psychology graduates who have no idea, no idea AT ALL, that their bachelor's degree qualifies them for absolutely nothin in the field of psychology. Nothing against people doing a degree in psychology, but they really should be told BEFORE they apply that the odds of them actually being able to practice in clinical psychology are extremely low. The requirements to further their career in psychology are essentially a first class degree, and huge determination, but nobody tells them before they start, and sometime before they finish that only the top 5% in any year group have a hope of a career in clinical psychology.

On the wider point, we don't really have student loans, we have a graduate tax with a high starting threshold and a defined maximum payment.

bigadaj

Paul_the_Painter wrote: »

I now work in recruitment, and you would be amazed at the number of psychology graduates who have no idea, no idea AT ALL, that their bachelor's degree qualifies them for absolutely nothin in the field of psychology. Nothing against people doing a degree in psychology, but they really should be told BEFORE they apply that the odds of them actually being able to practice in clinical psychology are extremely low. The requirements to further their career in psychology are essentially a first class degree, and huge determination, but nobody tells them before they start, and sometime before they finish that only the top 5% in any year group have a hope of a career in clinical psychology.

On the wider point, we don't really have student loans, we have a graduate tax with a high starting threshold and a defined maximum payment.

Yes but were still at the stage where people don't realise that a crap degree is worth little, would be interesting to see if the low ranked universities ever get done for mis selling.

ch3101

bigadaj wrote: »

Yes but were still at the stage where people don't realise that a crap degree is worth little, would be interesting to see if the low ranked universities ever get done for mis selling.

That would be fantastic.

I think that university should be the gateway to professions or indeed academia and you should not go to university unless there are real prospects afterwards.

I also feel that with folk being allowed into uni with low grades from school, the standards have dropped. Most people I know are pleased when they get 40% or above in exams because they have "passed", however realistically you need a 2:1 for a graduate role, which is 60% or above on average.

Hence people are going to uni, taking all of this debt and not working hard enough at all.

It will be nice in two years though when I leave with the first that I'm on track for and sit on top of the pile :A