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MSE News: Student loan interest rates set to fall, but fewer graduates eligible

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  • patanne
    patanne Posts: 1,286 Forumite
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    Based on an estimate of what they will be in Jan 15. Shot themselves in the foot there as they seem to be very slowly increasing at present. It has been suggested that the inclusion of reducing benefits could be the cause though. Unless they publish the figures used I suppose it is anyone's guess. Not publishing the figures though is bringing out suggestions of collusion between BIS and Erudio.
  • wxm123
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    I appreciate that I need to pay my mortgage style loan back at some point, but to drop the earnings threshold by £2k is a huge amount. Particularly as Erudio now include ALL income such as CHILD BENEFIT in their calculations!
    In this time of austerity, and the rising costs of everything else, if I were to start repaying my loan tomorrow (and probably will have to come April) it will be repayments of £185 per month!
  • anna2007
    anna2007 Posts: 1,182 Forumite
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    luckyfool wrote: »
    My understanding was that the deferment threshold was 85% of National Average male earnings. Does this significant reduction mean that the government is admitting that not only are wages not going up that they are falling? That would seem like an interesting admission to be making in the run up to an election. You would also think that a journalist (such as Martin) might be interested in querying this further!
    I didn't know it was based on male average earnings - can I ask where you heard that?


    It's been posted on the main MSE thread that Martin Lewis will be discussing Erudio on Radio5 Live at lunchtime today.
  • Lungboy
    Lungboy Posts: 1,953 Forumite
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    I've not seen anything to say it's based on male earnings, just on full-time earnings. Breakfast news was also saying that wages are still going up, albeit very slowly (0.6%), so I don't understand the 0.7% drop announced yesterday.
  • luckyfool
    luckyfool Posts: 1,683 Forumite
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    Lungboy wrote: »
    I've not seen anything to say it's based on male earnings, just on full-time earnings. Breakfast news was also saying that wages are still going up, albeit very slowly (0.6%), so I don't understand the 0.7% drop announced yesterday.

    The male median earnings thing is just from memory. I started at University in 1996 so it may have been that prior to the Regulations set out in 1998 the basis was different.

    The fact that the threshold is now being set at its lowest level since 2010/11, and lower even than 2009/10 is surely very embarrassing politically as it suggests that average earnings are now lower than in 2009/10. Maybe I am incorrect?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    wxm123 wrote: »
    I appreciate that I need to pay my mortgage style loan back at some point, but to drop the earnings threshold by £2k is a huge amount. Particularly as Erudio now include ALL income such as CHILD BENEFIT in their calculations!
    In this time of austerity, and the rising costs of everything else, if I were to start repaying my loan tomorrow (and probably will have to come April) it will be repayments of £185 per month!



    you have had about 16 years to plan for this day


    students that came after you have to pay once they earned 15,000


    you were enormously lucky and had you been sensible you would have saved up such a day
    you would only have had to save about £12 per month to save up your first year's payments (2220)
  • anna2007
    anna2007 Posts: 1,182 Forumite
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    Lungboy wrote: »
    I've not seen anything to say it's based on male earnings, just on full-time earnings. Breakfast news was also saying that wages are still going up, albeit very slowly (0.6%), so I don't understand the 0.7% drop announced yesterday.
    You mean the 7% drop?!

    The male earnings makes sense, as anything else could be seen as unfair to women due to the gender pay gap?

    One other point is that the regulations state average earnings for Great Britain, not the U.K.

    But even if you take male average earnings and exclude Northern Ireland, it still doesn't tally with the deferment level. I give up, hopefully the FOI request, or MSE, will get an answer.
  • anna2007
    anna2007 Posts: 1,182 Forumite
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    Ok, one last try...


    Could the difference relate to occupational pensions, which according to Wikipedia account for 7% of earnings? Coincidence?


    This would also explain why the deferment level's higher than 85% of AWE, i.e. pensions are added back on.
  • Lungboy
    Lungboy Posts: 1,953 Forumite
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    anna2007 wrote: »
    You mean the 7% drop?!

    No, there was a story on the news yesterday about average national earnings dropping by 0.7%.
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