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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 2nd May 17, 12:07 PM
    • 114Posts
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    MSE Eesha
    When will your student loan be written off?
    • #1
    • 2nd May 17, 12:07 PM
    When will your student loan be written off? 2nd May 17 at 12:07 PM
    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.
Page 2
    • Ed-1
    • By Ed-1 9th Nov 18, 9:47 PM
    • 2,413 Posts
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    Ed-1
    I think one of the issues with student loans is that the interest increases with RPI. HM Government has stipulated that it no longer thinks RPI is a proper and accurate measure of inflation so why arent they charging CPI on student loan?
    Originally posted by C_Mababejive
    The inflation measure in pre-1998 "mortgage-style" loans are fixed into contracts (governed by the Consumer Credit Act) and can't be changed.

    The inflation measure used in post-1998 "income-contingent" loans can be changed but the government have said they have no plans to change the terms of pre-2012 loans which are being sold off (and note the repayment threshold goes up quicker if it is uprated with RPI instead of CPI).

    With post-2012 loans, the government currently have no plans to sell these off and the terms of these loans are under review. However the government say they are continuing to use RPI as "it has always been used with student loans"!
    • C_Mababejive
    • By C_Mababejive 10th Nov 18, 11:49 AM
    • 10,702 Posts
    • 9,563 Thanks
    C_Mababejive
    How convenient...
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • badmemory
    • By badmemory 11th Nov 18, 6:00 PM
    • 2,207 Posts
    • 3,170 Thanks
    badmemory
    They managed to put DB pensions down to CPI without much heartache, why not student loans. Of course they will be worth more to their friends that they sell the loans on to if they are still at RPI.



    Time to accept that there is as much corruption in the UK as there is in most of the rest of the world, we just don't tend to do it with guns. At least if someone pulls a gun on you then you know what you are dealing with.
    • Ed-1
    • By Ed-1 11th Nov 18, 9:17 PM
    • 2,413 Posts
    • 1,256 Thanks
    Ed-1
    They managed to put DB pensions down to CPI without much heartache, why not student loans. Of course they will be worth more to their friends that they sell the loans on to if they are still at RPI.



    Time to accept that there is as much corruption in the UK as there is in most of the rest of the world, we just don't tend to do it with guns. At least if someone pulls a gun on you then you know what you are dealing with.
    Originally posted by badmemory
    Keep an eye out for the ONS decision on changes to the accounting of student loans to be announced on Monday 17th December:

    https://www.ons.gov.uk/news/statementsandletters/reviewofthetreatmentofstudentloansinthepublicsecto rfinances

    If the interest on student loans no longer counts as income to the government as it accrues (even though they probably will never actually receive it in repayments) then it could well blow up the incentive for there to be a high interest rate on the loans.
    • badmemory
    • By badmemory 12th Nov 18, 1:21 PM
    • 2,207 Posts
    • 3,170 Thanks
    badmemory
    Unfortunately though, it is those higher interest rates that make them appeal to the people they sell these loans on to. But we can live in hope!
    • Ed-1
    • By Ed-1 12th Nov 18, 1:49 PM
    • 2,413 Posts
    • 1,256 Thanks
    Ed-1
    Unfortunately though, it is those higher interest rates that make them appeal to the people they sell these loans on to. But we can live in hope!
    Originally posted by badmemory
    They've no plans to sell post-2012 loans though (currently). It's only the pre-2012 loans (with higher repayments and a lower interest rate) that are currently being sold.

    And there's another incentive that could be blown up with the ONS decision - the incentive to sell, as currently selling the loans at a loss lowers the government's debt without affecting the deficit in any way. That could well be about to change too. If selling loans at a loss raises the deficit then there's little incentive to sell at all.

    The ONS's announcements on this can't come soon enough.
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