The con of the Student Loan

mikewebs

Just for information, read this as a warning on the system wmployed to pay back student loans:

http://news.bbc.co.uk/1/hi/education/7382072.stm

Gemmzie

It's still probably the cheapest investment you'll ever make. I don't see people complaining when they are paying interest only mortgages? Same principle...

melancholly

pavlovs_dog wrote: »

of course, students would get better value for money if they bother to turn up to lectures, prepare for seminars so that they can benefit from discussion etc. sadly in my experience an ever increasing number are there for the social life and see lectures as a chore :rolleyes:

or don't realise that their fees go towards the library, sports, accomodation and food facilities that are subsidised. or to the careers service, university security, disability support, student union, counselling service or support staff who do all their admin. very very little of the fees actually pays for the time spent with the lecturers. fees are rubbish - but even at three grand it is still a massive discount on the real market value (just ask any non-EU student!). universities provide much more than a few lectures a week - at least to those students who actively use the huge range of services they offer!

melancholly

mikewebs wrote: »

Just for information, read this as a warning on the system wmployed to pay back student loans:

http://news.bbc.co.uk/1/hi/education/7382072.stm

really really good link - everyone with a student loan should read this, particularly this line:
"I think that most people out there don't know that they have to call the Student Loans Company to tell them they've finished paying the loan"

if people take note now, overpaying can be avoided (although it's entirely true that the system should deal with it much better than it does, i'm still pretty sure a sense of personal responsibility about it should apply as well!)

Bamber19

bestpud wrote: »

I'm still not sure if I'm being thick though! :rotfl:

You're not, you're getting it spot on. As the interest is calculated at the rate of inflation, without making any payments the only sum you will ever owe is the future value of your current loan.

Sigur_2

You also seem to miss out on the fact that your wages will rise with inflation and with promotion in the course of your career.

People always seem to calculate it on the basis they'll be earning £15k for the rest of their life. If they are, well, sucks to be them.

pinkcloudnine

Consider me dim, but, when our DS recieved his first statement from the student loans co, he was very suprised ,as were we,& many of his fellow students to see he was being charged intrest every month on the oustanding sum from the previous year. It was approx £15 per month plus being compounded.
!! go on, you can all shoot me down for being dim!!!!}
He now lives at home for this 2nd & 3rd years[ which he intended to do anyway] but many of his fellow students are finding it even harder to manage. Most we know work [EMAIL="d@m"]d@m[/EMAIL] hard with 2 or more pt jobs, aswell as completing a heavy workload. DS & co are studying history [yawn!] so plenty of reading etc
DS despairs of getting on the property ladder, & is starting to panic as to whether he will be able to get a decent job next year. We live in the so called prosperous SE [haha] There is virtually no graduate employment in the immediate area, & very few jobs for anyone unless it is unskilled & minimum wage,even then it's impossible to get one of these jobs as all the eastern europeans etc have taken them.:mad: :mad: And no, my kids are not afraid to do this sort of work, they all just want a job & the chance to have a decent life.

Lokolo

Sigur wrote: »

You also seem to miss out on the fact that your wages will rise with inflation and with promotion in the course of your career.

Except if you're a teacher!

Sigur_2

Yeah, they are overpaid enough as it is.

Lokolo

Sigur wrote: »

Yeah, they are overpaid enough as it is.

Not the point