If 83% are predicted not to repay student loans...

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




Please click 'post reply' to discuss below.

Comments

  • The alternative, of course, is to drop the stupid aim of getting 50% of students to do any sort of university course such as PhD's in Underwater Basket Weaving, MSc's in The Politics of Harry Potter via the Medium of Interpretative Dance and other such waste of money courses that add nothing for anyone.

    Getting the number of students down would allow the state to fully fund the courses again, without stretching the limited funds so thinly that students are required to contribute so much to begin with.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • Precious_B
    Precious_B Posts: 3 Newbie
    Name Dropper First Post
    edited 20 July 2020 at 1:38PM
    Well I'm confused about a few things here.

    You see I saw a tweet from @MartinSLewis made within the last hour
    What was not stated was that it linked to a historical article written over 2 years ago it seems.
    - so apologies now for bumping this 2+yr old thread.

    Oh well, nevermind, what that tweet said was:
    "Very common questions "If 83% of student dont repay student loans in full, who pays them." The answer is not what you think, I explain it here... "

    Well I thought before I read the article that the shortfall would be funded by the taxpayer. Having now read the article, I'm still of the opinion that the shortfall is funded by the taxpayer. Doesn't everyone think that?

    The article tries to confuzzle matters by saying:
    "This is a ‘loan’ from the state, so it’s not a question of who pays the rest of the contribution, it’s more the fact that the state doesn’t get repaid."

    Where does Martin think this government gets it's money from?
    Yes it may borrow it in the first instance, but all borrowing (except student loans if you don't earn enough) has to be re-paid eventually, whether it is borrowed by the government or by any of us. - unless we go bankrupt, etc.
    I'm not sure Martin believes either now or 2 years ago that this country is about to declare itself bankrupt, so where does the money come if not from the taxpayer?

    Can someone explain what I am obviously not understanding here???
  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I'm not sure Martin believes either now or 2 years ago that this country is about to declare itself bankrupt, so where does the money come if not from the taxpayer?

    Governmental borrowing. If you won't be repaying it through taxes, your kids and grandkids will be. Or they'll at least be servicing the interest on the borrowing. Or the amount borrowed will go up and up and up.

    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • Rich_Tribe
    Rich_Tribe Posts: 5 Forumite
    Third Anniversary First Post
    Interesting reading here on costs:
    Hmm .. I cannot post links so 
    • go to ifs org uk website 
    • then search for
    Higher long-term interest rates and the cost of student loans
    It looks like another place where the sharp increase in interest rates has upset the apple cart

    My fear is that the interest rate charged on loans which was dropped to RPI + 0% will have to be put back up to + something%.
    Can this be changed retrospectively for the current Plan 5 students?
    It doesn't feel fair to change the terms of an existing loan but I am not familiar with all the previous Plans to know if there is already precedent.



  • silvercar
    silvercar Posts: 49,169 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Interesting reading here on costs:
    Hmm .. I cannot post links so 
    • go to ifs org uk website 
    • then search for
    Higher long-term interest rates and the cost of student loans
    It looks like another place where the sharp increase in interest rates has upset the apple cart

    My fear is that the interest rate charged on loans which was dropped to RPI + 0% will have to be put back up to + something%.
    Can this be changed retrospectively for the current Plan 5 students?
    It doesn't feel fair to change the terms of an existing loan but I am not familiar with all the previous Plans to know if there is already precedent.



    They've changed the threshold in the past:

    https://www.turn2us.org.uk/about-us/news-and-media/latest-news/controversy-on-changes-to-student-loan-repayment


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