Augar report: lower university fees, return of grants etc

[whistl]

Has anyone been hearing the news today about the newly published Augar report?

www.fenews.co.uk/featured-article/24449-drop-out-rates-among-university-students-increases-for-third-consecutive-year

www.google.co.uk/amp/s/amp.theguardian.com/education/2018/mar/08/university-drop-out-rates-uk-rise-third-year

Not really fair if some are stopped from going to the better unis or the unis they are capable of though.

Interesting point re apprentices a better option for many.

Is it true uni loans are taken into account with mortgages?

Well if you are paying next to nothing because you don’t earn a lot, the loan isn’t a big deal. For most mortgages it’s not taken into account. It simply isn’t a debt or even a loan. It’s higher taxation.

The drop out info is old and pretty much lower end universities. We don’t know who the students were and whether they just couldn’t do the work. If they had really low A level grades, this could have been the problem. Generally higher drop out rates are at the least good universities. It is possible some students should have done lower tariff courses. It’s a problem with the demise of Colleges of HE.

@NicoAndTheNiners The repayment system won't change for those who are already at uni/going this year

Wasn’t that old. Article was published this year based on students who started in 2015. Says it’s amongst students who don’t get get adequate support. Those whose parents don’t ensure they get the recommended financial amount would surely fall into that bracket.

With mental health figures amongst students at a low it is a worry. Maybe apprenticeships will increase. Would surely be better in the STEM market as they’d finish with experience and a degree. Far more useful to the work place.

And re mortgages it isn’t a tax if it stops you getting the house you want.Salaries that are impacted by student loans when applying for a mortgage arent that big.

I thought student loans were taken into account in that when lenders assess affordability they include the loan repayment in your outgoings? So they may have some effect on how much you can borrow.

Yes. It’s affordability checks. The amount of tax is higher for pre 2012 loans. It’s less for post 2012 loans. It is fairly negligible though in terms of impact on a mortgage.

Define negligible. Being able to borrow even £25k less could be the difference between a house or no house in some areas or a bedroom.

It’s not a tax if some aren’t paying it with the same qualifications. Also that “tax” as you like to call it will stop some saving for a house deposit in the first place.

Ime with “tax” everybody on the same wage gets the same amount into their bank account each month.

It’s not a tax if some aren’t paying it with the same qualifications

Of course it's a tax. With a personal allowance of £25k. Like income tax has a standard personal allowance of £12k (or whatever it is).

With mortgage although it is true they are a multiple of grsos income (as ever) they do these days ask you to fillin a very detailed questionnaire of your spending eg f you spent 100% of your net salary on childcare costs or spend loads on clothes or going out or student loans so in that sense is relevant. Lenders usually want to see a few months of bank statements too to check what is coming in and going out each month.

Ime with “tax” everybody on the same wage gets the same amount into their bank account each month.

That's not true of income tax either! People can have different personal allowances on the same salary depending on lots of things.