The hidden small print in the Autumn Statement

Moby

http://www.lbc.co.uk/the-disgraceful-autumn-statement-policy-that-will-hit-students-120393
Martin Lewis sticks the boot in and rightly so!;)

CLAPTON

Moby wrote: »

http://www.lbc.co.uk/the-disgraceful-autumn-statement-policy-that-will-hit-students-120393
Martin Lewis sticks the boot in and rightly so!;)

basically returning to the system from 1999 to 2012 and so the student loan will be paid of earlier, with less interest payable.

thequant

CLAPTON wrote: »

basically returning to the system from 1999 to 2012 and so the student loan will be paid of earlier, with less interest payable.

Yep win win for students, they save interest and quickly learn an important lesson in life that all those debts accrued during their student days were not free money.

silvercar

I accept it is a change to what students would have expected; I don't accept it would change their decision on whether to take a loan.

chris_m

A very poorly written article TBH. It claims, erroneously, that the repayment rate will be frozen instead of increasing with average earnings, therefore people will pay more - if the rate doesn't increase, then people would actually be paying less, not more.
The error is that it's not the rate which is being frozen (that is set by the inflation rate in the previous year), but the Repayment Threshold - the point at which repayment starts to be due.
The net result, surely, is that people won't necessarily end up paying more, just they'll have to start paying it sooner?

thequant

At some point the lower income tax threshold is going to meet the student loan repayment threshold.

At that point someone is going to have to admit that the basic rate of income tax is now 29%.

Mistermeaner

thequant wrote: »

At some point the lower income tax threshold is going to meet the student loan repayment threshold.

At that point someone is going to have to admit that the basic rate of income tax is now 29%.

It's already higher than that because of ni

But just pop out a couple of kids and you get it all back in tax credits

CLAPTON

thequant wrote: »

At some point the lower income tax threshold is going to meet the student loan repayment threshold.

At that point someone is going to have to admit that the basic rate of income tax is now 29%.

current marginal rates are 20% tax
12% Ni
9% student loan
all have different thresholds

the student loan will be paid off and drop to 0% depending upon how much you earn

Fella

Surely the key part in the term "student loan" is the word "loan". Why are so many students so filled with outrage that money that's been loaned to them should perhaps be paid back?

danothy

Fella wrote: »

Surely the key part in the term "student loan" is the word "loan". Why are so many students so filled with outrage that money that's been loaned to them should perhaps be paid back?

Are you sure that is what they are outraged about? I heard that they were outraged at a retroactive change to the terms by which they agreed to pay it back ...

martinsurrey

danothy wrote: »

Are you sure that is what they are outraged about? I heard that they were outraged at a retroactive change to the terms by which they agreed to pay it back ...

and there is another life lesson.

Always read the small print before you sign anything.

The terms and conditions will have stated that the repayment thresholds would be variable and set by the Gov, so the terms have not changed, its just they didn't read the terms in the first place...