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Government 'overestimates' student loan repayments
grizzly1911
Posts: 9,965 Forumite
Not really surprising.
Oversupply a market with graduates and many will not get compensated sufficiently to enable them to repay this debt.
Destined to fail.
"The government is likely to be underestimating the value of student loans that will never be paid back, an influential committee of MPs says."
http://www.bbc.co.uk/news/education-26171742
How long before it becomes a whole life time debt attached to assets?
Oversupply a market with graduates and many will not get compensated sufficiently to enable them to repay this debt.
Destined to fail.
"The government is likely to be underestimating the value of student loans that will never be paid back, an influential committee of MPs says."
http://www.bbc.co.uk/news/education-26171742
How long before it becomes a whole life time debt attached to assets?
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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Comments
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grizzly1911 wrote: »Not really surprising.
Oversupply a market with graduates and many will not get compensated sufficiently to enable them to repay this debt.
Destined to fail.
"The government is likely to be underestimating the value of student loans that will never be paid back, an influential committee of MPs says."
http://www.bbc.co.uk/news/education-26171742
How long before it becomes a whole life time debt attached to assets?
whether one supports the principle of student loans or not, the way it has been implemented is really stupid
with the 1998 onwards income contingent loans the starting point for repayment was 15,000: quite high at the time but inflation would erode that brings more people into payment
however it's now been index linked which will decrease (or at least reduce the number) of people in repayment
with the post 2012 loans the repayment line start at over 21,000 making even fewer repay.
one wonders why they botherEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
I don't think they actually care whether anyone pays them back or not. The important thing is it fiddles the bookeeping so that the financial position doesn't look so bad.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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one wonders why they botherClifford_Pope wrote: »The important thing is it fiddles the bookeeping so that the financial position doesn't look so bad.
An expensive operation for little effect. They are already taking the hits on the debt as they are selling off chunks at a discounted value. With less chance of repayment those sell offs will become even less lucrative.
They should have been honest and just introduced a graduate tax starting once the personal allowance had been exceeded."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Being a graduate my self, I have often wondered how all the student loans will ever get repaid.
My threshold is at around the £15,000 mark that Clapton refers to, it may have even increased now (but not by much). I make payments towards my loan each month and they are not much at all, they almost seem pointless.
Granted, there will be graduates with jobs paying £25k + a year, but only those in a select group of sectors, finance, business, medicine etc.
Since leaving Uni nearly two years a go, my wage has moved up slightly as I have moved to different companies; however, the job that I have does not require a degree. So me having a degree in my current circumstances is pointless.
However, the work experience gained from my current employment and previous employment + my degree, is allowing me to look at other sectors. Because I can now draw from different experiences combining them together.
Currently, I am looking at the study skills sector, teaching Functional Skills etc. Most positions in this sector seem to be paying around the £20k P/A mark for entry level and I have seen some posts for the well experienced offering around £35k P/A.
I have interviews for next week lined up and if I manage to get a new job, my student loan contributions will go up. So I guess for those graduates who do end up in low paid work; the majority may very well work their way up and eventually make a contribution, however delayed it may be.
That of course presents the argument, why bother with Uni, why not just work your way up from the off - a fair point - but Uni was fun
, and allowed me to work on my game 
if you catch my meaning lol. 0 -
Paid mine off in 5 years. Wife will never pay hers off, she's a teacher. Living abroad,she doesn't pay a penny, even if. I did give her permission to work0
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The student loan scheme was to get the idea of paying for ones tertiary education in to the main stream. I don't think it matters to much that the over all cost is not much less than paying everyone's fees for them.
In the groundwork has been laid so the repayments in the future for new loans can me modified gradually over time to ensure a greater proportion gets paid back.0 -
Typhoon2000 wrote: »The student loan scheme was to get the idea of paying for ones tertiary education in to the main stream. I don't think it matters to much that the over all cost is not much less than paying everyone's fees for them.
In the groundwork has been laid so the repayments in the future for new loans can me modified gradually over time to ensure a greater proportion gets paid back.
maybe so
but all the changes made so far have been to reduce the proportion paid backEU tariff on agricultual product 12.2%
some dairy products 42.1% cloths 11.4%
EU Clinical Trials Directive stops medical advances0 -
Typhoon2000 wrote: »The student loan scheme was to get the idea of paying for ones tertiary education in to the main stream. I don't think it matters to much that the over all cost is not much less than paying everyone's fees for them.
In the groundwork has been laid so the repayments in the future for new loans can me modified gradually over time to ensure a greater proportion gets paid back.
If increasing numbers of "graduates" do not earn enough to repay then how will that happen?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »If increasing numbers of "graduates" do not earn enough to repay then how will that happen?
Who knows may be in the future, you will need to start repayment on the first £10000 if your salary is over £15000, and the remainder if you earn over £21000.
May be in the future there will be a graduate tax, once paying for tertiary education is considered the norm by the general population.0 -
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