Student loan petition - please sign!

Blacksheep1979

MercilessKiller wrote: »

*sigh*

Since when have A level students been able to take out loans or mortgages?

Well, since they turn 18....

MercilessKiller wrote: »

You gotta stop thinking everyone reads and understands everything. When a 30 year old takes out a mortgage then I agree, but for an A level student... your in a dream world mate.

I know everyone doesn't - and it is foolish. As I said earlier, this is why this country is in such a state with credit and so many people have huge amounts looming over their heads.

If you think its the right way to carry on through your life by not reading what your getting yourself into and then complaining afterwards you're in a dream world (and tending towards studentphilitis).

melancholly

without wanting to get caught in crossfire, i thought i'd add my penny's worth! the student loan is the best possible loan you could ever ever get! even with the increases in interest rates due to overall inflation going up, it will still be a hell of a lot better than any loan you could get from a bank. it is difficult that the interest rate will go up, but it should be in line with earnings as well, so it should still be the same proportion of income that goes to it.

i do kind of agree that many sixth form students wouldn't have bothered reading the details of the agreements and that it's probably all that can be expected - however, i don't think that not reading something because you're 18 and distracted can count as a 'reason' for complaining about the situation now.

if i ended up in a situation because i hadn't read the small print, or was encouraged by my school to do it, i'd blame me or perhaps the school to a degree for a lack of explanation, but it wouldn't blame the system. i just wouldn't advertise the fact that i hadn't read the information i was given.... which is, in hindsight, foolish - not necessarily stupid or lazy or anything severe like that, but certainly, now, it would have been a good thing to do. i don't think foolish is a particularly aggressive word - it just means a lack of forethought, so it's probably appropriate whether or not many 18 years olds have that level of thinking ahead isn't really the point (i certainly didn't!) - it would all be a lot easier if they did!

MercilessKiller

Ok melancholly i agree with most of that.

But as I was saying before there was this new article going around the bbc about changing the interest rates for studnet loan NOT based on inflation as it stands.

Instead, change the interest rate to what standard is, and THEN go by inflation, so that its not a loan better than anything else.

Adding this to their new plans of giving higher loans to poorer students, and this creates more poverty for students coming out of university.

I understood, and do not argue with the fact the student loan interest currently follows inflation and am perfectly happy with that... but all these new talks about changing it not based on current inflation have confused and upset many people.

I dont fully undersatnd it, but BBC Radio 4 had a big debate and clearly announced how it would have the reverse effect of financially encouraging students to get student loans....

melancholly

as far as i understand it, it will probably make students pay more in interest - that's true - but it will still be a hell of a lot better than other commercial loan........ there is some statistic somewhere of (on average so has to be interpreted with caution) how much more people with a degree earn over a lifetime - and it's a lot more than the loan. i guess i agree it's bad, but if everyone paying a bit more interest keeps the system in place so that more people can get the loans and have access to uni, i don't feel like i can complain too much about it, does that make sense?

nobblyned

MercilessKiller wrote: »

But as I was saying before there was this new article going around the bbc about changing the interest rates for studnet loan NOT based on inflation as it stands.

Instead, change the interest rate to what standard is, and THEN go by inflation, so that its not a loan better than anything else.

As I said in my previous post. The rate is NOT jumping to a new higher bank rate then going by inflation. It is that they are swapping the measure of inflation from CPI to the higher RPI. There are issues in this, but essentially it shows that CPI is no longer a true reflection of inflation due to being fudged for political ends.

The interest rate on student loans is still inflation, it's just that the government are admitting RPI is the real measure. It is still a much better loan than anything you will get from a bank.

I thought you said that you only didn't read and understand things when you were an A-Level student?

Former_MSE_Forum_Manager

I've removed some posts to try and keep this thread on track without trying to kill the discussion. Could i remind everyone (and this applies to ALL users contributing to this thread) that we don't need to make discussion personal.

Disagreements are fine, we encourage them because that is often how we learn and understand money better, but there is simply no need to critcise another person directly or post in a derogatory manner.

phlash

I'm going to clear this up. The rate of student loan is set by the rate of inflation according to the RPI statistic for April (4.8% April 2007).


This rate is then applied as from September 2007 - September 2008 to the student loan.

Lets just hope the RPI figure in April 2008 is something a bit lower, so that the rate applied for Sep 2008 - Sep 2009 is lower.

It is still better to save money in an ISA, say NS&I at 6.3%, than it is to pay off the debt that is at a rate of 4.8% as of September (Currently 2.4% off of the top of my head) So don't panic.

It is still the cheapest debt that you can secure/have, its just got a little more expensive than previous couple of years thats all.

MercilessKiller

Thanks phlash Makes sense.

welf_man

phlash wrote: »

I'm going to clear this up. The rate of student loan is set by the rate of inflation according to the RPI statistic for April (4.8% April 2007).

It's actually based on RPIX - Retail Price Index minus mortgages. There has been no announcement on the rate as yet, and the reports were speculative, based on the news that there was going to be an statement regarding student support.

Both the Nat. Assoc. of Student Money Advisers and NUS are keeping a close eye open for the actual rate announcement!

Mel.

zola80

with regards to the statement earlier approx... ''loans taken out after 2006 will be cleared after 25 years'' etc. etc.

my question is that i took out loan in 1999/2000 and graduated in 2003/2004. I have a large amount to repay but wondered what happens to my loan if it is not paid off before 2004 plus 25 years.....?

anyone!