love_rat Posted August 31, 2011 Share Posted August 31, 2011 After 30 years, the debts from the student loans will be written off. This in my mind almost makes education free again, which to be fair it should be. Students pay back their debts only after earning £21,000, however with the current state of the jobs market predicted to get worse, I can see many students will never pay back their student debt. So can we expect the goernment of 30 years into the future simply to write off all these debts, or can you see legislation being put into place where they will forcably take back the debt? this could be in the form of taking £50,000 (or whatever is left to pay) out of the value from people's homes, thereby forcing todays 20 somthings to take out additional mortages or loans, which in turn forces them to work into their 70s to pay back the debt? Link to comment Share on other sites More sharing options...
Sheff Laser Posted August 31, 2011 Share Posted August 31, 2011 What happens if a student gets a loan, uses it to pay for their degree then uses said degree to find work abroad. Can the loan follow them? Link to comment Share on other sites More sharing options...
LeMaquis Posted August 31, 2011 Share Posted August 31, 2011 So can we expect the goernment of 30 years into the future simply to write off all these debts, or can you see legislation being put into place where they will forcably take back the debt? this could be in the form of taking £50,000 (or whatever is left to pay) out of the value from people's homes.. So how are people going to afford to buy homes if they don't earn enough to pay back their student grants? It's impossible to predict what any government might do in 30 years but I'd imagine they'd have to write it all off. Link to comment Share on other sites More sharing options...
Mikes10 Posted August 31, 2011 Share Posted August 31, 2011 There's an interesting aricle on the Martin Lewis MSE website http://blog.moneysavingexpert.com/2010/12/17/will-new-student-loans-stop-you-getting-a-mortgage/ Link to comment Share on other sites More sharing options...
LeMaquis Posted August 31, 2011 Share Posted August 31, 2011 What happens if a student gets a loan, uses it to pay for their degree then uses said degree to find work abroad. Can the loan follow them? In theory the loans company can pursue a loan anywhere in the world. In practice they'd have to find people and then get them, or their employer through attachment of earnings, to cough up the repayments. I just can't see this happening. Link to comment Share on other sites More sharing options...
bladesufc1 Posted August 31, 2011 Share Posted August 31, 2011 In theory the loans company can pursue a loan anywhere in the world. In practice they'd have to find people and then get them, or their employer through attachment of earnings, to cough up the repayments. I just can't see this happening. no they cant Link to comment Share on other sites More sharing options...
Swiftsrus Posted August 31, 2011 Share Posted August 31, 2011 As the average UK salary is around 25k, and that for those who go to university it is higher, I would assume that the vast majority will earn over 21k. Link to comment Share on other sites More sharing options...
iansheff Posted August 31, 2011 Share Posted August 31, 2011 It is fine the Government saying that you only pay back the loan when earning over a certain amount but unless they have changed it in the last 10 years they charge interest on it. Link to comment Share on other sites More sharing options...
lobster Posted August 31, 2011 Share Posted August 31, 2011 there was an interesting program on one of the business channels , the problem in the USA is quite horrrendous . the student loan debt is over a TRILLION dollars with individuals owing over $200k . bankrupcy is not an option as the debt cannot be written off and the debt collectors quite aggressive ,persuing the students family members as well .quite a few have just woken up to the fact that they are stuck with this for life and will never get out of the debt trap Link to comment Share on other sites More sharing options...
JFKvsNixon Posted August 31, 2011 Share Posted August 31, 2011 The money lost by the government from the loans not paid back, will be more than made up from the money that the government has cut from the university's budget. Link to comment Share on other sites More sharing options...
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