Government stuffing young people again, student loans

[Binjob118]

Great day to bury the news that from next year student loans will be repayed over 40 years instead of 30. This makes a massive difference. Hate this government and Tony bloody Blair for stopping free tuition. Of course, won't affect all the rich kids who never take out the loan. This on top of impossibility of young people ever being able to buy a home makes me want to scream. Totally screwed. Certainly don't think IABU!!

I didn’t sit my GCSE maths, I did a degree in health and social care and then a masters in occupational therapy.

@HariboMaroon did ur degrees not have any quant element at all?

Funny, I do not know anyone from my school who has not obtained a postgraduate degree. Same about my family. It is just what one does with life: tries to learn something about the world. It is indeed about culture and social expectation. Most people will get jobs, to me higher education is about participating in a form of European culture that offers a pathway to a wider understanding of life. It is not instrumental training for job. It is about enable people to grow so that they create new types of jobs in the future, if you like.

@downtonabbeyfan1234

They did. I didn’t struggle though.

I didn’t bother turning up to any of my GCSEs because school bored me. (I’ve since been diagnosed with ADD).

I enjoyed my university study though as I obviously got to pick the subject.

The young in the England are being shafted at every turn. Crap wages and impossible and rising costs for everything.
They need to get out and protest. Vote out the Tories. Or emigrate. The apathy of most is concerning.

@Kazzyhoward

The thing with student loans is that it's middle earners who are hit hardest. The lower earners don't pay much back (if at all) and the higher earners pay it back relatively quickly so the compound interest doesn't affect them as much. It's the middle earners, on say, £40k-£50k, who are paying for the full 30 years (soon to be 40) because their repayments are barely touching the capital due to the punitive high interest being added, so they're just constantly paying interest and never any of the underlying debt.

Yes, exactly... my DD is now in the NHS, working a stroke unit, the work she does is amazing, if i say so myself. she is just under the loan threshold but in 2 years time she wont be and her repayments will be £11 per month.... if she gets a 2.5% pay rise every year AND goes into band 6, after her 30 years, she will have paid back less than half her loan, the rest is in interest payments.

Wouldn't it be far better to have say a mortgage rate interest ? & the students pay off the debt, which helps balance the Govt books.

they haven't done this because despite the so called levelling up agenda, the aim is to keep working class kids trying to better themselves (which is our background) down where they belong.

@mjf981

The young in the England are being shafted at every turn. Crap wages and impossible and rising costs for everything. They need to get out and protest. Vote out the Tories. Or emigrate. The apathy of most is concerning.

Yeah sadly, once DD has gained the experience via the NHS, she is off to Australia.

@Alexandra2001is ur DD a doctor or a nurse? Best of luck with ur DD when she goes to Australia (any test she needs to pass?)

[quote downtonabbeyfan1234]@Alexandra2001is ur DD a doctor or a nurse? Best of luck with ur DD when she goes to Australia (any test she needs to pass?)[/quote]
She needs a two stage application process but she is an Australian citizen, by descent, so thats a big help, she was actually offered a job there before she graduated.

@DdraigGoch you must of missed all my posts where I pointed out and gave examples of the fact that in the UK most people do undergraduate degrees in areas they don't end up working in.

Also the tourism and leisure industries include anything from small businesses to large multi-national chains. The degrees like golf studies, and business and tourism are aimed at people eventually getting senior jobs in larger businesses so competing in an international arena against other well-qualified people.

I have three degrees, including 2 masters with distinction

I am numerate but rubbish at the stuff you have to do for GCSE.

When I did my mock O Level I ‘achieved’ a U (unclassified), same again for the actual exam. I was so stressed about it I threw up before the exam and refused to sit the second paper. I am mystifed as to how I managed to pass the resit. I was never going to be in a career that required high level maths skills and my lack of ability hasn’t held me back, I’ve managed multi million pound budgets I’ve never needed the calculus or algebra that caused me so much stress.
Meanwhile my son who has autism and a learning difficulty excels in Maths and sciences. He is doing very well on an Engineering course.
He struggled with the demands of English GCSE, he is unlikely ever to need to analyse Shakepeare or poetry,
He did scrape through the English GCSEs and is more than literate. English caused him more stress than all the others put together and he needed huge amounts of support to get through them, probably to the detriment of his other grades.
A functional maths and English qualification would be more appropriate for many people.

@Alexandra2001 exactly your daughter is doing a much needed job and we will loose her eventually because the system is wrong
I ideally don't want mine to emigrate but currently I am inclined to encourage them because of how things are here for youngsters from working class backgrounds who don't have family money to fall back on

@downtonabbeyfan1234 yes but have you needed algebra or calculus to get by
Be better teaching about interest rates ans budgeting and adding up in your head etc all things your likely to need to know
Mine both passes gcse maths but certain things i bet they have totally forgotten now as never had to use since , revised it to pass and thats it never to be used again

Many people go to Uni with no intention of paying it back. Or don’t want to earn over 27k so they don’t have to pay it back. What’s the point of that? Only 1/4 of students apparently pay all their loan back at the moment. That is rubbish, and this is rubbish for our kids. Best thing we can do (the generation where many bought their houses for much lower costs) is to save and help their kids through Uni so they can take out less student loans. Not possible for everyone but why many chose to have less children that they might have as they want to support them through Uni / maybe help with a house deposit

@shivawn £3 k i would be happy with compared to 10 k

@Darbs76 thats because the interest is so high i bet more than a 1/4 actually pay the loan back and a small amount of interest but the goverment won't show those figures will they
The whole idea of the maintenance loan system is its means tested
Only a few will get the whole £10000 the rest get less and its expected parents will top up
We will have to top up a few thousand a year to help my son pay accommodation and some food
The £30000 the course costs we can't begin to chip at that
Other countries especially in the eu don't charge any near as much so loans won't be so big

@Frankola yes we are trying to help ds as well and hes working now and saving 85% of his wages so that he can pay towards things and he will also work alongside which i think is a good thing as it gets them used to workplaces aa well
We can't help loads but said we will continue paying his mobile and I will pick up toiletries and cupboard food weekly in my shopping and put it to one side in his room so he can take stuff back and send him a little money when we can as well to help, but he should have a fee thousand from work which will help a lot

@Darbs76

Many people go to Uni with no intention of paying it back. Or don’t want to earn over 27k so they don’t have to pay it back. What’s the point of that? Only 1/4 of students apparently pay all their loan back at the moment. That is rubbish, and this is rubbish for our kids. Best thing we can do (the generation where many bought their houses for much lower costs) is to save and help their kids through Uni so they can take out less student loans. Not possible for everyone but why many chose to have less children that they might have as they want to support them through Uni / maybe help with a house deposit

Interest is why so many people don’t pay it all back. Students are being conned by unis and Martin Lewis who go on about how it’s not really debt and trot out the “most don’t pay it all back” tripe. In fact most pay more than the amount borrowed but not all the exorbitant interest added.

@Darbs76 many of those students are likely to come from poorer backgrounds were taking out a loan of any kind is seen as a massive risk.

Therefore they want to be sure they are earning and will continue to earn well over the minimum loan repayment salary before they start paying it back.

If they think they can't they will deliberately go for jobs that keep them under the repayment threshold.

Part of Martin Lewis's method of working is to understand some of human psychology in getting into debt and repaying it. This is why to some of the PPs on this thread he seems untroubled in telling young people to take out loans to get an education.

@worriedatthemoment yes my DS goes in September. We have been able to save so he doesn’t need a loan in year 1, but will have to see how it goes after that. Had to do a lot of overtime for that and his dad’s been working overseas to earn the extra cash needed. DS will be expected to work in the holidays too. We have a younger DD too so certainly not easy supporting 2 kids through Uni. I see many parents say they want their kid to always earn under the threshold so they don’t pay it back, but if I made sacrifices for my child at Uni I’d certainly want him earning enough to pay it back. Some go to Uni in later life and never intend to pay it back, not sure how I feel about that.

@Crimesean

But who should pay for uni then? It's pretty unfair that Joe Taxpayer has to pay for the education of graduates who will either go on to massively out-earn him, OR who will piss about for 3 years, get a pointless degree from somewhere shite, and then still end up doing some non-graduate-level role that doesn't enrich society.

We don't need more graduates - we need fewer, and for only the brightest to go to university (and for the less bright - they can jolly well pay for it themselves, not the taxpayer).

This, the system is a farce

A loan is a loan ans should be paid back. A while ago there was a whole thread on people wanting advice on how to avoid paying back student loans. Always making sure they earned under a certain amount and returning the forms each year. If you owe the money pay it back fgs.

@Viviennemary

A loan is a loan ans should be paid back. A while ago there was a whole thread on people wanting advice on how to avoid paying back student loans. Always making sure they earned under a certain amount and returning the forms each year. If you owe the money pay it back fgs.

Why should today’s young have to pay back a loan of £45k plus interest when previous generations didn’t?

@Darbs76 I have no issue and neither does ds with paying bacj but I do think we could charge less and the interest is ridiculous
My ds def won't avoid a job so as not to pay back but no guarantee he will def get a high paying job straight out of uni, so to start with any job is better than none as at least your paying taxes
We are going loan year 1 then hoping maybe year 2 no loan if he manages to work and still have money left over, then prob loan year 3
But he will have the £30000 fees loan no matter what
A poster from Ireland said its 3k a year over there , if it was the same here most would pay back what they owe quite quickly
I think maybe they should take £5 at least a month out of any paid job once you have a loan as at least its paying something , but maybe it would cost more in administration

@Viviennemary

A loan is a loan ans should be paid back. A while ago there was a whole thread on people wanting advice on how to avoid paying back student loans. Always making sure they earned under a certain amount and returning the forms each year. If you owe the money pay it back fgs.

Absolutely, i agree 100% but students aren't being asked to pay back their loans, they are being asked to pay back many times the loan in interest payments.

Even people who will, eventually, earn 40 or 50k will never pay back their loans in full.

Remember too that loans have a non competitive interest rate, they cannot shop around for a fixed rate of a better deal - it really is a scam.