dosxuk Posted December 13, 2010 Share Posted December 13, 2010 because the higher earners will be paying back more than they did previously, subsidising the poorer graduates. But both high and low earners will be taking out much more than previously, so nobody is being subsidised. Link to comment Share on other sites More sharing options...
llamatron Posted December 13, 2010 Share Posted December 13, 2010 But both high and low earners will be taking out much more than previously, so nobody is being subsidised. but does it actually cost £6k to educate an average student at degree level. Im guessing that the government have done the sums and worked out that if a higher earner pays off all their loan with interest it will cover a proportion of the loan of someone on the dole. They are not expecting low earners to pay it back but Im sure they have already taken this into account. Im not claiming to know the answer but I am assuming they have thought about this. Link to comment Share on other sites More sharing options...
Twiglet Posted December 13, 2010 Share Posted December 13, 2010 because the higher earners will be paying back more than they did previously, subsidising the poorer graduates. They won't - they'll be paying back 9% of what they earn over 21k instead of 9% of what they earn over 15k, so they'll be paying less. Link to comment Share on other sites More sharing options...
llamatron Posted December 13, 2010 Share Posted December 13, 2010 They won't - they'll be paying back 9% of what they earn over 21k instead of 9% of what they earn over 15k, so they'll be paying less. clearly if their loans have doubled and they pay it off in full they will be paying more than double the amount they paid previously. Link to comment Share on other sites More sharing options...
Twiglet Posted December 13, 2010 Share Posted December 13, 2010 clearly if their loans have doubled and they pay it off in full they will be paying more than double the amount they paid previously. As discussed earlier in the thread, very very few will ever pay it off in full due to the added inflationary interest. I calculated a while ago that someone who earns less than £30,000, borrowing the minimum amount of £30,000 will still owe over £100,000 after the 30 year repayment limit. A student will have to earn £41,000 a year before they even start paying off more than just the interest. Link to comment Share on other sites More sharing options...
llamatron Posted December 13, 2010 Share Posted December 13, 2010 As discussed earlier in the thread, very very few will ever pay it off in full due to the added inflationary interest. I calculated a while ago that someone who earns less than £30,000, borrowing the minimum amount of £30,000 will still owe over £100,000 after the 30 year repayment limit. A student will have to earn £41,000 a year before they even start paying off more than just the interest. As I said its more complicated than calculating the minimum a student will pay now compared to previously. It doesn't matter if a large proportion don't pay it off effectively they have increased the cap for the higher earners who will now be paying more than they did previously. And where did the minimum amount of £30k come from. At £6k per year thats £18k (and thats the maximum they will be allowed to charge except in extreme circumstances) by the end of their studies plus interest. Link to comment Share on other sites More sharing options...
espadrille Posted December 13, 2010 Share Posted December 13, 2010 So now that people have started to think rationally about this the realisation has set in that maybe 50% of students wont ever pay back the loan mmm. something tells me this way of thinking may have been a good idea a few weeks ago, rather than the hyped up sensationalistic panic way of thinking that we have endured Link to comment Share on other sites More sharing options...
crookesey Posted December 13, 2010 Share Posted December 13, 2010 Just a question guys, what happens if the graduate decides to take his/her degree overseas? Link to comment Share on other sites More sharing options...
Twiglet Posted December 13, 2010 Share Posted December 13, 2010 As I said its more complicated than calculating the minimum a student will pay now compared to previously. It doesn't matter if a large proportion don't pay it off effectively they have increased the cap for the higher earners who will now be paying more than they did previously. And where did the minimum amount of £30k come from. At £6k per year thats £18k (and thats the maximum they will be allowed to charge except in extreme circumstances) by the end of their studies plus interest. Plus just over £4,000 per annum living costs loan. Link to comment Share on other sites More sharing options...
espadrille Posted December 13, 2010 Share Posted December 13, 2010 Just a question guys, what happens if the graduate decides to take his/her degree overseas? as far as I am ware, the debt goes with them but I guess the same would apply if they didnt earn over the threshold and didnt pay it back after 30 years then it would be written off. Link to comment Share on other sites More sharing options...
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