Open letter to David Cameron about the retrospective student loan hike

MSE_Eesha

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "Open letter to David Cameron about the retrospective student loan hike" Blog.

Please click 'post reply' to discuss below.

LABMAN

Martin Lewis is 'ex' everything at the moment. He should be honest and take a proper sabbatical IMHO.

LABMAN

To be honest in my opinion the site has gone downhill since ML sold it. He is rarely around on MSE from what I see? What's his newest latest made up job title this week?

guiriman

I agree that it's morally unfair to change the conditions that were agreed on, however if in the terms and conditions it's stated they can do this then it's legally fine and they should have read the small print. If they spent time doing calculations the they should have spent time reading the Ts & Cs.

"It means many lower- and middle-earning graduates will repay thousands more over the life of their loans."

Here's where I have an issue. The effect of the U-turn is to increase the speed at which loans are repaid, not the total amount owed. So what you are in effect saying, because of this some students will have to repay more of the money they borrowed in the first place rather than having a bigger part of it written off. Any reason why the rest of society should support students borrowing money and then not having to repay all of it?

phillw

guiriman wrote: »

"It means many lower- and middle-earning graduates will repay thousands more over the life of their loans."

Here's where I have an issue. The effect of the U-turn is to increase the speed at which loans are repaid, not the total amount owed.

If you are going to pay the loan off in full then the amount repaid will be lower in numerical terms, because the faster you pay it off the less interest is charged. Opportunity cost and inflation are also factors in real terms though.