Change graduation debt rules, universities told

"Universities have been told to change debt rules which could stop students from graduating or continuing their courses..."
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Change graduation debt rules, universities told

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  • gadgetmindgadgetmind Forumite
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    A guy I went to uni with in the early 80s never officially graduated and got certificate etc. because he hadn't paid some accommodation fees. He still hasn't paid them!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

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  • Instead of stopping them from graduating, the Universities could insist that it goes in any references issued by their staff. It is a factual statement if the student has left a place of learning having refused to settle any debts.
  • This means the student loan needs to be paid to the university first. The university deducts tuition, accomodation etc., and then give the remainder to the student.

    Gives them a taste of salary life to come. You think you earn £2,000 a month? So how come you only get £1,300 in the account? Income tax, National Insurance, Benefit in Kind, pension (now auto-enrolled). They don't deduct for mortgage, because you wouldn't dare not pay it, until they make it law that lenders can't repossess you for non-payment.
  • amiehallamiehall Forumite
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    It's not normally big amounts though. I had to do a friend a favour and pay a library fine for them (as they had gone a few hundred miles away). They were going to be prevented from graduating.

    The amount was about £4.20

    Your tuition loan is already paid directly to the university and, after your first year, it's unlikely you owe them money for anything else as you're probably no longer in halls. Just petty stuff like library books or parking fines. I would be pretty annoyed to be prevented from graduating by a sub £10 debt. It does seem disproportionate. Sometime communication about what you owe and how to pay it is poor, students are sometimes not notified in time to clear their debt.
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  • amiehall wrote: »
    It's not normally big amounts though. I had to do a friend a favour and pay a library fine for them (as they had gone a few hundred miles away). They were going to be prevented from graduating.

    The amount was about £4.20

    Your tuition loan is already paid directly to the university and, after your first year, it's unlikely you owe them money for anything else as you're probably no longer in halls. Just petty stuff like library books or parking fines. I would be pretty annoyed to be prevented from graduating by a sub £10 debt. It does seem disproportionate. Sometime communication about what you owe and how to pay it is poor, students are sometimes not notified in time to clear their debt.

    It is the responsibility of the student to know if any debts are owed, not for the university to have to chase them up. How they can not be notified in time? The student will surely be aware of the amount from the time the debts were accrued.
  • gemandogemando Forumite
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    Pincher wrote: »
    This means the student loan needs to be paid to the university first. The university deducts tuition, accomodation etc., and then give the remainder to the student.

    Gives them a taste of salary life to come. You think you earn £2,000 a month? So how come you only get £1,300 in the account? Income tax, National Insurance, Benefit in Kind, pension (now auto-enrolled). They don't deduct for mortgage, because you wouldn't dare not pay it, until they make it law that lenders can't repossess you for non-payment.

    In theory that's a great idea but the student loan often isn't enough to cover accommodation.

    The maximum maintenance loan is £5500 for students living away from home but outside london (Sept 2013-Sept 2014). The halls at my uni cost between £3240 to £7375 for 42 weeks (i.e. Sept-June roughly; Sept 2013 - Sept 2014 prices) which means that unless you're lucky enough to get one of the cheaper ones, your maintenance loan won't cover it.

    Therefore you still have to remember to pay for it yourself anyway in most cases so you might as well get the students used to organising their finances!
  • gemando wrote: »
    The halls at my uni cost between £3240 to £7375 for 42 weeks (i.e. Sept-June roughly; Sept 2013 - Sept 2014 prices) which means that unless you're lucky enough to get one of the cheaper ones, your maintenance loan won't cover it.

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