Further Worrying News About Student Loans

setmefree2

I'm guessing that ML & MSE are aware of this

Business Secretary Sajid Javid said last month that he could not commit the government to a promise that the repayment rate on student loans will not be retroactively increased within this parliament.

This means that the government could increase the repayment rate from 9% to (say) 10%

http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/11977775/Calculator-paying-down-your-student-loan-early-could-save-over-20000.html

MSE_Helen_S

Thanks, we're aware, and keeping a watching eye.

Will_Haines

Listen to David Willetts on Moneybox 28/29th November,

A student loan is created when a student goes into a bank on the High Street and signs a contract enforceable - both ways - in law. He may have to put his parent's house on the line to get it, but (bank rate aside) the whole transaction is fixed and everyone knows where they stand.

A 'Student Loan', by contrast, means that you have given the Government permission to dip their sticky fingers into your salary and extract whatever they think they can get away with.So it is definitely a tax, then.

Politicians love this 'loans' smokescreen because a Graduate Tax raises all sorts of difficult questions. Why penalize the educated? Why should a doctor pay more tax than someone without a degree? Why don't all graduates who received free university education pay the tax - especially those graduate MPs who have unblushingly pulled up the ladder?