'Labour’s plan to cut tuition fees to £6,000 is...' blog discussion

TheNickster

I have a question. What effect does having a £44,000 student loan debt have on an individual's credit rating? Will it effect ability to get a loan or mortgage?

Cyberman60

What people don't know or conveniently forget is that before 1997 only about 10% went to Uni. Labour made it 50% mainly to cover up youth unemployment IMO, and the fact is that Uni is not suitable for all. I'd revert to free Uni education for the top 10% and forget it for the other 40%, most of whom quit their courses anyway or gain worthless 'degrees' !!

ViolaLass

TheNickster wrote: »

I have a question. What effect does having a £44,000 student loan debt have on an individual's credit rating? Will it effect ability to get a loan or mortgage?

The monthly payment is counted as an outgoing but the total amount is irrelevant.

TheNickster

ViolaLass wrote: »

The monthly payment is counted as an outgoing but the total amount is irrelevant.

Not according to my credit score rating. The amount owed on a credit card can reduce a credit score rating.

ViolaLass

TheNickster wrote: »

Not according to my credit score rating. The amount owed on a credit card can reduce a credit score rating.

But your student loans are not on a credit card. I am talking only about tuition/maintenance loans, not more general debt such as credit cards.

After all, most students do not pay their tuition fees with credit cards so debt run up on the cards will not be due to the fees (but more likely due to living costs/enjoying the pub). Cutting the fees will make no difference to credit card debt.

ericctheking

When the loans are sold to a private debt collecting agency (this is the conservatives plan and it is out in the open) the company will register your student loan with credit agencies as on a "payment holiday" if you are earning under the threshold to start paying it back. Then you will have no chance of getting a mortgage and have to rent for the rest of your life when you could have educated yourself using the internet (hell what a waste of money most universities are, you can get all that stuff online!) got a job early and bought a few buy to lets!

sharp910sh

Load of rubbish Martin Lewis, I work in oil and gas and have earned £44k in my second year of work. Does that mean I am rich or poor? Eh?

People who go to university aim to become "rich", I did not go to university to earn less than £35k a year. Most people aim to become as rich as physically possible. If so they are likely to pay back their entire student loan amount. So reducing the tuition fees will aim them.

I now pay about £300 in student loan, yet I can barely afford to save for a house. If i has £300 in my pocket I could easily save extra money for a house.

So please do not say it will only benefit the rich, as university goers aim to become rich. Not poor, if not they would have not decided to go to university in the first place and earn a lesser salary.

Martin Lewis you clearly have too much money to understand.

Nada666

sharp910sh wrote: »

Load of rubbish Martin Lewis, I work in oil and gas and have earned £44k in my second year of work. Does that mean I am rich or poor? Eh?

You earn £44K and can't save for a home? What utter rot. You clearly have so much money you have never bothered to not spend it. If you don't want to save for a home don't - but stop pretending you can't.

Nada666

sharp910sh wrote: »

People who go to university aim to become "rich", I did not go to university to earn less than £35k a year. Most people aim to become as rich as physically possible. If so they are likely to pay back their entire student loan amount. So reducing the tuition fees will aim them.

And if you think 40 or 45% of young people entering the workplace are going to be earning £35K a year you have strange ideas about the economy.

Takeaway_Addict

sharp910sh wrote: »

Load of rubbish Martin Lewis, I work in oil and gas and have earned £44k in my second year of work. Does that mean I am rich or poor? Eh?

People who go to university aim to become "rich", I did not go to university to earn less than £35k a year. Most people aim to become as rich as physically possible. If so they are likely to pay back their entire student loan amount. So reducing the tuition fees will aim them.

I now pay about £300 in student loan, yet I can barely afford to save for a house. If i has £300 in my pocket I could easily save extra money for a house.

So please do not say it will only benefit the rich, as university goers aim to become rich. Not poor, if not they would have not decided to go to university in the first place and earn a lesser salary.

Martin Lewis you clearly have too much money to understand.

Your take home is approx 2.7k, you pay off 300 a month in loans leaving you 2.4k...and you can't save a decent amount for a house each month?

Maybe you should visit debtfreewannabe, even if you are not in debt!

And I disagree that people goto uni to become rich, most I would suspect go as they see it as a logical step in life.